Real estate investment trusts must distribute at least 90 percent of their taxable annual earnings to shareholders.

Question

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Real Estate Investment Trusts (REITs) are required by law to distribute at least 90% of their taxable income to shareholders annually in the form of dividends. This requirement ensures that the majority of the income generated by the REIT is passed on to the investors, and it also allows the REIT to avoid paying corporate income tax on the distributed earnings.

Real Estate Investment Trusts Must Distribute at Least 90 Percent