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A Real Estate Investment Trust or REIT (rhymes with treat) is a tax designation for a corporation investing in real estate that reduces or eliminates corporate income taxes. The REIT structure was designed to provide a similar structure for investment in real estate as mutual funds provide for investment in stocks. Business - Directory of business/finance/loan/mortgage related partner sites Computers - Directory of computer hardware/software/peripheral related partner sites Internet - Directory of webhosting/webdesign/internet marketing related partner sites Software - Directory of software related partner sites Web Design - Directory of web design/development related partner sites Web Hosting - Directory of web hosting related partner sites Web Promotion - Directory of search engine optimization/internet marketing related partner sites Web Resources - Directory of other web related partner sites Recreation - Directory of travel/hotel/cruise related partner sites Casino - Directory of online gambling/poker/blackjack/roulette related partner sites Health - Directory of online pharmacy/hospital/health related partner sites Shopping - Directory of online shopping/gift related partner sites Miscellaneous - Directory of all other partner sites
In recent practice, many REITs distribute all of or even more than their current earnings, often resulting in dividend yields comparable to bond yields. If an investment company such as a REIT distributes more than its taxable income, the excess distribution is considered "return of capital" for tax purposes (taxed as a capital transaction, rather than regular income). The distribution requirement may hamper a REIT's ability to retain earnings and generate growth from internal resources. This and other restrictions imposed by the Internal Revenue Code generally limit a REIT's suitability for growth-oriented investors. |
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