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Industry Discussions / Real Estate Inv. Trusts: REITs


Subject:  Re: WY Date:  1/23/2022  5:41 PM
Author:  Valuemongeragain Number:  86858 of 87094

You should expect all timber REIT's dividends to be capital gains as trees are considered capital assets. There are two ways that timber can be sold for tax accounting purposes. The first is to sell actual timber on the stump and produces solely capital gains. The second is to sell cutting rights which creates ordinary income and IBIT.

Most timber REITs dividends are solely capital gains as they sell timber on the stump so to speak.
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