Uncovering the SECRET Tax Benefits of REITs!

Image sources: NAREIT, YCHARTS, EPRA, O, Canva

Important Disclaimer: Leonberg Capital holds positions in BEI.UN. This video is impersonal and does not provide individualized advice or recommendations for any specific person. Viewers/readers should not make any investment decision without conducting their own due diligence and consulting their financial advisor about their specific situation. This video is for entertainment purposes only and you are responsible for your own investment decisions. The information is obtained from sources believed to be reliable, but its accuracy cannot be guaranteed. The opinions expressed are those of the publisher and are subject to change without notice. This YouTube channel is managed by Leonberg Research OÜ, a subsidiary of Leonberg Capital OÜ.

#reits #dividend #passiveincome

[askjussi]

I pay less taxes investing in REITs than in rental properties. What about you?
Please like and subscribe if this was helpful :) Jussi

[duane]

I have wondered about the tax on Reits many times, thank you so much for clearing this up.

[ususopen]

Great video! Tax is actually one of the reason I like REITS. On the one hand, compared to other high dividend stocks (BDC, Covered call), it has much lower tax rate (20% deduction and/or return to capital) and much higher value appreciation. On the other hand, compared to the regular stocks that pay qualified dividends, it has much higher dividend and similar tax rate and appreciation. If you are in 24% tax bracket, then after the 20% deduction, your REIT dividend will get the similar tax rate (15%) as qualified dividend.

[Estates]

Great VIDEO!! Such valuable information. Can you do a video on what to do with a $1M windfall at 64, with no previous "Wall Street" accounts. (real rental properties before) THANKS!!

[piggelbos]

Hey Jussie, can you make a video with your top 5 residential REITs? Curious about that, thanks for your highly informative videos, like youre channel 👍

[billbeard]

Another nice video, Mr. Askola. I would rather stick needles in my eyes than fuss with rental properties.

A suggestion for a deep dive: CAPL.

And a question: are you aware of any REITs that are developing properties for electric vehicle charging? I can imagine a future where “gas stations” consist of gas pumps, EV charging units, convenience store, +fast food.

[dexagalapagos]

Would love to see a video showing the exact mathematical breakdown of taxes investing say $1m in a REIT vs investing into a good dividend ETF like SCHD.

[henrywright]

As an investor in REIT am I to pay the tax or tax rate before I withdraw it ?

[babz]

What a great channel ! Greetings from Cyprus

[henrywhh]

I have lots of options of what to put in registered accounts. I utilize all my registered accounts and still have a considerable balance in Taxable accounts. Does it make sense to put reits in my taxable account. How do I know how much is taxes deferred versus taxable on any particular reit?

[danaallen]

I have a question. Ive never invested in reits and is new to it. I would like to know if I can take some of the money earned from reits and pay it towards my taxes during the year. That way, when its time to file my taxes, reporting my reits income, I may not owe as much when tax season starts. Any help or clarification on this would be great.

[daviddlarsen]

Hey Jussi
Great Channel!

Crown castle or American tower?
Which you pref?

[AdrianButler]

Beautiful background and birds chirping. Wheres this?

[jasoncohen]

Hey Jussi can we invest in your Reit portfolio ?

[resterAnonyme]

Not just tax deferred, but tax free like Roth’s.

[FoamandStuff]

Owning physical real estate allows way more tax advantages. It’s even possible to zero out your income even if you have positive cashflow through paper losses like depreciation and bonus depreciation aka cost segregation. Also when you sell the property you can do a 1031 tax exchange and rollover your gains to the next property and pay no taxes. You can keep doing this until you die and whoever inherits your real estate gets a step up in cost basis and wipes out all gains. You can’t do any of these with REITs. Even if you have it in a tax favored account eventually when you withdraw it you pay taxes at ordinary income rates which is higher than the tax rates for cashflow from rentals. Investors who own physical property can even do a cash out refinance and pay zero taxes on that money because you don’t pay taxes on borrowed money. There are times when owning the physical property can be challenging but because of leverage, appreciation, tax advantages, principal pay down from tenants, cash flow from rents, protection from inflation through owning a packed commodity, physical real will always be the better choice and the better investment in the long term.

[jdavis]

REITs are tax efficient for 2 kinds of people. People who have never invested in other asset classes, or people who don't understand math.

[scottdaniels]

Welcome to NATO! 144a Tax benefits here in the US on REITs!!!