You buy a REIT for $50 a share. The REIT distributes $3.00 consisting of return of capital. You are in the 30 percent income tax bracket (which also applies to short-term capital gains)and the 15 percent long-term capital gains bracket. What is the tax implication of this distribution?

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The Answer of You buy a REIT for $50 a share. The REIT distributes $3.00 consisting of return of capital. You are in the 30 percent income tax bracket (which also applies to short-term capital gains)and the 15 percent long-term capital gains bracket. What is the tax implication of this distribution?

You Buy a REIT for $50 a Share