Who Form 1120 Reit Gains 2023-2024

Reeth or real estate investment trusts were created by Congress in 1960 to give all Americans the opportunity to benefit from investing in income-producing real estate. REITs allow anyone to own or finance properties in the same way shareholders benefit by owning stocks and other corporations. The stockholders of a REIT earn a share of the income produced through real estate investment without actually having to go out and buy or finance property. This video provides some insight into what REITs are and how they work. The REIT industry has a diverse profile, which offers many benefits. REITs are often classified in one of two categories: equity REITs or mortgage REITs. Equity REITs own a wide range of property types, including offices, shopping centers, hotels, apartments, and much more. Equity REITs derive most of their revenue from rent on those properties. Mortgage REITs may finance both residential and commercial properties. They get most of their revenue from interest earned on their investments in mortgages or mortgage-backed securities. In addition, REITs may be publicly registered with the SEC and have their shares listed and traded on major stock exchanges. Alternatively, they may be publicly registered with the SEC but not have their shares listed or traded on major stock exchanges. They may also be private companies not registered with the SEC and not listed or traded on a stock exchange. Regardless of the type, REITs operate under a specific set of rules established by Congress. A REIT is an entity that is modeled after mutual funds and is treated by the Internal Revenue Code as a corporation. It must be widely held by shareholders, primarily own or finance real estate, and own its real estate with a long-term investment horizon. The IRS implements the REIT rules and oversees what qualifies as a REIT. The Internal...