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Dividends taxed as ordinary income are considered investment income for purposes of the investment interest expense...

Dividends taxed as ordinary income are considered investment income for purposes of the investment interest expense limitation. T

True

False

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Answer #1

Ans: The answer is True.

Reason: Because the majority of REIT dividends are taxed as ordinary income up to maximum rate of 37% (returning to 39.6% in 2026), plus a separate 3.8% surtax on investment income.Taxpayers may also generally deduct 20% of the combined qualified business income amount which includes Qualified REIT dividends through Dec. and are considered as a investment income.

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