REITs/BDCs Flashcards

1
Q

Equity REIT

A

makes income from small rental properties; not highly leveraged

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
2
Q

Mortgage REIT

A

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

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
3
Q

What is the benefit of qualifying for Subchapter M taxation?

A

No tax on distributed net income

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
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

How well did you know this?
1
Not at all
2
3
4
5
Perfectly