Question

14. For each of the following income types, indicate the tax rate (if any) that would apply to a US individual: "C" = Capital gain tax rate "O" = Ordinary tax rate "N" = No tax

____. Amounts borrowed from a bank and distributed to owners of a partnership

____. Regular operating dividends paid to shareholders of REIT stock.

____. Distributions designated as capital gain distributions paid to shareholders of REIT stock.

____. Distributions designated as return of capital distributions paid to shareholders of REIT stock.

____. Income earned from the rental operations of a commercial building.

____. Management fee income collected from running the operations of an apartment complex.

Answer 1

Amounts borrowed from a bank and distributed to owners of a partnership - Ordinary tax rate

Regular operating dividends paid to shareholders of REIT stock - Ordinary tax rate

Distributions designated as capital gain distributions paid to shareholders of REIT stock – Capital Gain Tax rate

Distributions designated as return of capital distributions paid to shareholders of REIT stock- No Tax

Income earned from the rental operations of a commercial building - Ordinary tax rate