Question

Which of the following is a requirement of REITs?

At least 90% of a REIT’s taxable income must be distributed to shareholders.

All of the responses are REIT requirements

Not more than 50% of a REIT’s shares can be owned by five or fewer shareholders.

A REIT must have at least 100 stockholders.

Answer 1

To qualify as a RIET, few conditions that need to be satisfied by companies  are -

• To Invest at least 75% of total assets in real estate, cash, or Treasuries
• Derive at least 75% of gross income from rents, interest on mortgages that finance real property, or real estate sales
• Pay atleast 90% of taxable income in the form of shareholder dividends each year
• Be an entity that's taxable as a corporation
• Be managed by a board of directors or trustees
• Have at least 100 shareholders after its first year of existence
• Have no more than 50% of its shares held by five or fewer individuals

Based on the above point, the answer to the question is - ALL OF THE RESPONSES ARE REIT REQUIREMENTS