Personal Finance: REITs such as CBL offer investor benefits
News from Chattanooga Times Free Press:

Shopping center developer CBL & Associates announced a 5 percent hike Friday in its quarterly dividend. Chattanooga-based CBL is a member of a special class of pass-through investment vehicles known as real estate investment trusts, or REITs. These securities are often favored as income plays, and represent an excellent way for investors to gain broad exposure to real estate assets without the hassle of being a landlord.

Congress enacted legislation in 1960 that created REITs as a means of enhancing real estate investment opportunities for the general public. Recognizing the capital intensity and long-term nature inherent in large real estate ventures, Congress established a special class of ownership aimed at expanding the breadth of participation and spreading the risk of property investing.

Most large real estate trusts in the U.S. are publicly traded on the major exchanges just like other stocks and are therefore quite accessible to most investors.

Many smaller REITs are not publicly traded and hence unsuitable for all but the most sophisticated investors, owing to their inherent lack of liquidity and transparency.

To qualify as a REIT, a company must distribute at least 90 percent of its taxable income each year in the form of dividends to shareholders. In return, the company is not required to pay corporate income tax, since the pr…………… continues on Chattanooga Times Free Press

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Personal finance Q & A
News from Irish Times:

The Irish Times – Tuesday, February 28, 2012

Your queries answered by DOMINIC COYLE 

What will a UK move mean for tax on rental income? 

I purchased an apartment in 2006 for €300,000. My mortgage is about €1,300 per month. I have managed to keep my repayments up to date. It now looks likely that I will have to move to the UK to get a new job, where I would hope to rent accommodation. In such circumstances I will have to pay tax and so on in the UK. 

I would hope to rent out my apartment in Dublin for about €800 per month. It would be impossible to sell the apartment at present and, in any event, it would be in negative equity. 

My question is: what are the tax implications for the potential rental income of €800 per month while I continue to pay the mortgage of €1,300? 

– Ms MW, Dublin 

IT IS TO your credit that you have, to date, managed to keep up with your payments.

The bad news, in tax terms, is that you are going to get no breaks from a f…………… continues on Irish Times

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