REITs/BDCs Flashcards
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