Advertiser Disclosure

advertising disclaimer
Skip to main content
calculating taxes

REIT Taxation Basics

REITs are different than most other stocks when it comes to taxes.


[Updated: Feb 17, 2021 ] Oct 24, 2019 by Matt Frankel, CFP

Get our 43-Page Guide to Real Estate Investing Today!

Real estate has long been the go-to investment for those looking to build long-term wealth for generations. Let us help you navigate this asset class by signing up for our comprehensive real estate investing guide.

Blocks showing the word REITs

Click to enlarge

Getty Images
Long-Term Capital Gains Tax Rate Single Filers (Taxable Income) Married Filing Jointly Heads of Household Married Filing Separately
0% $0 to $39,375 $0 to $78,750 $0 to $52,750 $0 to $39,375
15% $39,376 to $434,550 $78,751 to $488,850 $52,751 to $461,700 $39,376 to $244,425
20% Over $434,550 Over $488,850 Over $461,700 Over $244,425

Income ranges represent taxable income, not just capital gains. Married filing separately rates calculated as half of those for joint filers. Data source: Tax Foundation.

Type of Distribution Amount Paid
Ordinary dividend (Section 199A) $2.198784
Long-term Capital Gain $1.115292
Return of Capital $0.165924
Total $3.480000

Got $1,000? The 10 Top Investments We’d Make Right Now

Our team of analysts agrees. These 10 real estate plays are the best ways to invest in real estate right now. By signing up to be a member of Real Estate Winners, you’ll get access to our 10 best ideas and new investment ideas every month. Find out how you can get started with Real Estate Winners by clicking here.