Not exact matches
Because of this
favorable tax treatment at the corporate level, the
dividends paid to REIT shareholders don't
qualify to be taxed at the long - term capital gains rate.
Non
qualified dividends which one would receive from a REIT do not get the
favorable tax status as REITS do not pay taxes if they meet the IRS requirements for REIT status.
Generally, a security must be held more than 61 days of the 121 - day holding period surrounding the security's ex-
dividend date to
qualify for
favorable tax treatment of the
dividend.
This part of the
dividend generally
qualifies for
favorable tax treatment.
Even if a corporation pays a
dividend that's
qualified, you also need to hold the shares for more than 60 days to get the
favorable tax treatment.
Qualified dividends are taxed at the long - term capital gains rate, which is considered more
favorable than the tax rate for ordinary
dividends.