Contact UsAn Investment Advisor is recommending a Real Estate Investment Trust (REIT) as very advantageous from a tax perspective. Is this really a good tax savings strategy? What is the upside and the downside of this type of investment for our family?
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Tax Professional Answers
Sherry German
Absolutely stay away from REIT's unless you are a knowledgeable and experienced real estate investor. They are a really good way to get burned really bad. Unless you have a controlling interest, you will probably not profit much and the risk it just way to high.
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566 weeks ago
Dr. Clifford Frank
I totally disagree with Sherry's comment. Investing in a REIT is a great opportunity. REIT's in the UK are obligated to distribute 90% of the net rental income profits to its shareholders. Depending on how you make your investment, for example if you invest via your pension fund, any dividends received by the pension fund is tax free.
in the US there is also the possibility to do a like for like exchange if you move a property into a REIT
investing in a REIT is a good way to invest in property. Before investing always tax advice
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563 weeks ago
in the US there is also the possibility to do a like for like exchange if you move a property into a REIT
investing in a REIT is a good way to invest in property. Before investing always tax advice