Which statement is correct regarding real estate income or investment trusts?

Question

Quizplus · Accepted Answer

Real estate income or investment trusts are considered special purpose entities because they are established to hold and manage income-producing real estate assets. They are not typically set up as unlimited purpose trust funds. Unitholders do not have unlimited liability, as their liability is limited to the amount of their investment in the trust. However, unitholders may be required to pay tax on the income received from the trust, depending on their individual tax situation.

Which Statement Is Correct Regarding Real Estate Income or Investment