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Flashcards in REITs/BDCs Deck (4)
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1
Q

Equity REIT

A

makes income from small rental properties; not highly leveraged

2
Q

Mortgage REIT

A

makes income from spread between mortgages and borrowing rate; highly leveraged

3
Q

What is the benefit of qualifying for Subchapter M taxation?

A

No tax on distributed net income

4
Q

4 requirements for Subchapter M

A

75% of income related to real estate

75% of assets in real estate

Unincorporated, managed by trustees

90% of net investment income distributed