REIT dividends are mostly taxed as ordinary income, because a REIT pays no corporate tax and passes its earnings through to shareholders. That can make REIT income feel tax-heavy compared with the qualified dividends a typical stock pays. But a specific provision softens the blow: the Section 199A deduction, often called the qualified business income (QBI) deduction, lets eligible taxpayers deduct 20% of their qualified REIT dividends. That deduction lowers the effective top federal rate on those dividends from 37% to roughly 29.6%. Unlike the QBI deduction on an operating business, the REIT-dividend component has no wage or property (UBIA) limit and no income phase-out, so it is available to taxpayers at every income level who claim the QBI deduction. The 2025 One Big Beautiful Bill Act (OBBBA) made the deduction permanent after it had been scheduled to sunset at the end of 2025. This guide explains, educationally, what the QBI deduction is and how it applies to REIT dividends — but it is not tax advice, so verify the current rules with your tax advisor and coordinate with your CPA.
What the QBI Deduction Is
The QBI deduction is a federal income-tax deduction created by Section 199A of the tax code. In its most familiar form, it lets owners of pass-through businesses — sole proprietorships, partnerships, S corporations, and the like — deduct up to 20% of their qualified business income, reducing the income on which they pay tax. The idea behind it was to give pass-through business owners a benefit roughly comparable to the lower corporate tax rate, so that income earned through a pass-through wasn't taxed far more heavily than income earned through a C corporation.
Section 199A actually contains two related components. The first is the deduction on qualified business income from an active trade or business, which is subject to wage and property limits and income-based phase-outs for certain service businesses. The second — the one that matters here — is a separate deduction equal to 20% of qualified REIT dividends (combined with qualified publicly traded partnership income). This REIT-dividend component is treated more simply than the business component: it is not subject to the wage or UBIA-of-property limit and is not phased out based on your income, which makes it broadly available.
So the QBI deduction is a Section 199A provision that lets eligible taxpayers deduct up to 20% of certain pass-through income, including a distinct 20% deduction on qualified REIT dividends. The QBI deduction — Section 199A's break that lets pass-through owners and REIT investors deduct up to 20% of qualifying income, with the REIT-dividend piece carved out as a simpler, broadly available component free of the wage, property, and income-phase-out limits that apply to the business piece — is the foundation for understanding the REIT tax benefit. It reduces taxable income, not tax directly. Understanding what it is frames how it applies to REIT dividends. The QBI deduction is a 20% Section 199A deduction on qualifying pass-through income, with a distinct, broadly available 20% deduction for qualified REIT dividends.
How It Applies to REIT Dividends
When a REIT pays you a dividend, it reports the breakdown on Form 1099-DIV. Most of that dividend is ordinary (non-qualified) income, taxed at your ordinary rates because the REIT paid no corporate tax. It is precisely this ordinary REIT-dividend portion that qualifies for the 20% Section 199A deduction. Smaller slices of the distribution — qualified dividends, capital-gain distributions, and return of capital — are treated under their own rules and are not the part the deduction targets. So the deduction applies to the large, ordinary slice of REIT income that would otherwise be taxed at full ordinary rates.
The defining feature of the REIT-dividend deduction is how few strings are attached. The business side of Section 199A limits the deduction by the wages a business pays and the basis of its property (the UBIA limit), and it phases the benefit out for high earners in certain service fields. None of that applies to qualified REIT dividends. There is no wage limit, no property limit, and no income phase-out — a high earner and a modest earner both deduct 20% of their qualified REIT dividends, provided they claim the deduction. The 2025 OBBBA made this deduction permanent, removing the scheduled end-of-2025 sunset.
So the deduction applies specifically to the ordinary REIT-dividend portion shown on your 1099-DIV, and it does so without the wage, property, or income limits that constrain the business component. The REIT-dividend deduction — applying to the large ordinary slice of a REIT distribution (not the qualified-dividend, capital-gain, or return-of-capital slices), with no wage, UBIA, or income-phase-out limit, and made permanent by the 2025 OBBBA — is unusually clean and broadly available. It targets exactly the income REITs produce most of. Understanding how it applies shows why the deduction is so useful for REIT investors. The 20% deduction applies to the ordinary REIT-dividend portion on your 1099-DIV, with no wage, property, or income limits, and is now permanent.
(Verify the current rules with your tax advisor, since the mechanics and any future changes can affect your specific situation.)
The REIT-dividend deduction is the rare tax break with almost no fine print — no wage limit, no property limit, and no income phase-out, so it reaches investors at every income level who claim it.
Calculating the Benefit
The mechanics are straightforward in concept. Take the qualified REIT-dividend amount reported on your 1099-DIV, multiply by 20%, and that is the deduction — an amount subtracted from your taxable income, not from your tax. For example, $10,000 of qualified REIT dividends yields a $2,000 deduction, so you are taxed on $8,000 of that REIT income rather than $10,000. At a 37% top rate, deducting 20% lowers the effective rate on those dividends to roughly 29.6% (37% multiplied by the remaining 80%). At lower brackets, the proportional benefit is the same — your effective rate on the qualified portion falls by about a fifth.
There is one overall ceiling worth knowing. The total QBI deduction (the business and REIT components combined) cannot exceed 20% of your taxable income minus net capital gain. For most investors this cap is not binding, but in a year with little other taxable income or large capital gains, it can limit how much of the REIT-dividend deduction you actually use. The deduction is claimed whether or not you itemize your other deductions — it is a separate, below-the-line deduction available to taxpayers who take it, and it does not require itemizing in the usual sense of choosing the standard versus itemized deduction.
So calculating the benefit means multiplying your qualified REIT dividends by 20%, recognizing the result lowers the effective rate on that income by about a fifth, and checking the overall taxable-income cap. Calculating the benefit — multiplying the qualified REIT-dividend figure on your 1099-DIV by 20% to get a deduction that cuts the effective rate on that income to roughly 29.6% at the top bracket, while staying within the overall ceiling of 20% of taxable income minus net capital gain — turns the rule into a number. The math is simple, the cap is the main wrinkle. Understanding the calculation shows the real-dollar value. Multiply qualified REIT dividends by 20% for the deduction; it lowers the effective rate by about a fifth, subject to the taxable-income cap.
(These figures are illustrative; your actual result depends on your full return, so confirm the numbers with your CPA.)
- The 20% deduction applies to the ordinary qualified-REIT-dividend portion of your distribution, the slice taxed at ordinary rates.
- It lowers the effective top federal rate on those dividends from 37% to roughly 29.6%, with proportional benefit at lower brackets.
- Unlike the business side of Section 199A, the REIT-dividend deduction has no wage, property, or income-phase-out limit — it is broadly available.
- The deduction works only in taxable accounts and is capped overall at 20% of taxable income minus net capital gain; the 2025 OBBBA made it permanent.
Account-Type Considerations
The QBI deduction on REIT dividends is a feature of the taxable account only. Inside a tax-advantaged account — a traditional IRA, Roth IRA, or 401(k) — REIT dividends are not taxed as they are received, so there is no current income to deduct against, and the 20% deduction provides no benefit. In a traditional IRA, withdrawals are eventually taxed as ordinary income with no REIT-dividend deduction applied; in a Roth, qualified withdrawals are tax-free regardless. Either way, the §199A benefit simply does not exist inside the wrapper.
This creates a genuine trade-off in where to hold REITs. On one hand, REIT dividends are mostly ordinary income, which argues for sheltering them in a tax-advantaged account so that ordinary-rate income is not taxed every year. On the other hand, moving REITs into an IRA forfeits the 20% deduction that a taxable account would capture. Neither consideration automatically wins. The right placement depends on your tax bracket, the size of the REIT allocation, the mix of accounts you hold, and how much of your distributions arrive as ordinary income versus return of capital or capital-gain distributions.
So account type matters because the 20% deduction lives only in taxable accounts, setting up a real trade-off against the instinct to shelter ordinary income in an IRA. Account-type considerations — the fact that the §199A deduction benefits only taxable accounts (it disappears inside a traditional IRA, Roth, or 401(k) where REIT dividends aren't currently taxed), creating a trade-off against the tax-shelter logic of holding ordinary-income REITs in a retirement account — are central to using the deduction well. Placement is a balancing act, not a formula. Understanding the account interaction shows why placement deserves thought. The 20% deduction helps only in taxable accounts; sheltering REITs in an IRA forfeits it, so optimal placement weighs the bracket, allocation, and account mix.
(This is educational, not advice; your CPA can model placement for your specific accounts and bracket.)
The deduction lives only in taxable accounts — so the very move that shelters ordinary REIT income inside an IRA is also the move that throws away the 20% break.
Coordinating With Your CPA
Although the REIT-dividend deduction is one of the simpler parts of Section 199A, it still sits inside a return with many moving parts, which is why coordination with your CPA matters. Your 1099-DIV breaks the distribution into its components, and the qualified REIT-dividend figure flows onto the QBI forms. Your CPA confirms the qualifying amount, applies the overall taxable-income cap, and reconciles the REIT-dividend deduction with any business-side QBI you may also have. Doing this correctly ensures you capture the full benefit without overstating it.
Coordination becomes more valuable when the deduction interacts with other decisions. If you are weighing whether to hold REITs in a taxable account or an IRA, your CPA can model the after-tax outcome both ways, factoring in your bracket, the deduction, return-of-capital effects, and your broader account mix. If your taxable income or capital gains vary year to year, the overall cap may bind in some years and not others. And because tax law changes, your CPA tracks whether the rules that applied this year still apply next year. Baker 1031 Investments does not provide tax or legal advice; we help you understand the structure and coordinate with the professionals who do.
So coordinating with your CPA turns a clean-sounding rule into an accurate, optimized result on your actual return, especially where placement and the cap come into play. Coordinating with your CPA — having a tax professional confirm the qualifying REIT-dividend amount, apply the overall cap, reconcile it with any business-side QBI, and model account placement and year-to-year variation — is what converts the deduction from a general concept into a correct number on your return. The rule is simple; your full return is not. Understanding the value of coordination keeps the benefit accurate and compliant. Work with your CPA to confirm the qualifying amount, apply the cap, and model placement, since Baker 1031 does not provide tax advice.
How Baker 1031 Helps You Understand the REIT QBI Deduction
Baker 1031 Investments helps investors understand, educationally, how the 20% Section 199A deduction applies to REIT dividends — what the QBI deduction is, how it reaches the ordinary REIT-dividend portion without a wage or income limit, how to estimate the benefit, why it works only in taxable accounts, and how placement creates a trade-off — so you can have an informed conversation with your tax advisor and decide whether REITs fit your goals.
REIT and non-traded-REIT interests and related securities are offered through the broker-dealer, Aurora Securities, Inc. (member FINRA/SIPC), and any recommendation follows a suitability review — non-traded and private REITs typically require accredited or otherwise suitable investors, while publicly traded REITs trade through ordinary brokerage accounts. Baker 1031 does not provide tax or legal advice; this material is educational, not tax advice. Your CPA confirms how the QBI deduction applies to your specific situation, applies the overall taxable-income cap, models account placement, and tracks any changes in the rules — verify the current rules with your tax advisor. We help you understand the deduction, weigh where REITs might sit across your accounts, and access suitable offerings when appropriate, coordinating with your tax professionals. Yields and returns are never promised — past performance does not guarantee future results, and REIT share prices and distributions can fluctuate. Our role is to help you understand the REIT QBI deduction clearly and invest only when suitable for your goals and risk tolerance.
Frequently Asked Questions
What is the QBI deduction on REIT dividends?
The QBI deduction on REIT dividends is a federal income-tax break under Section 199A that lets eligible taxpayers deduct 20% of their qualified REIT dividends. REIT dividends are mostly taxed as ordinary income, because a REIT pays no corporate tax and passes its earnings through to shareholders. The 20% deduction applies to that ordinary, qualified REIT-dividend portion, which is reported to you on Form 1099-DIV. Subtracting 20% from the income lowers the effective top federal rate on those dividends from 37% to roughly 29.6%. Unlike the business side of Section 199A, the REIT-dividend deduction has no wage limit, no property limit, and no income-based phase-out, so it is broadly available to investors who claim it. The 2025 One Big Beautiful Bill Act made the deduction permanent. This is educational information, not tax advice — verify the current rules with your tax advisor, as the details can affect your specific situation.
What is Section 199A?
Section 199A is the part of the federal tax code that created the qualified business income (QBI) deduction. It has two related components. The first is a deduction of up to 20% of qualified business income from pass-through businesses such as sole proprietorships, partnerships, and S corporations — this piece is subject to wage and property limits and to income-based phase-outs for certain service businesses. The second is a separate deduction equal to 20% of qualified REIT dividends (combined with qualified publicly traded partnership income), and this REIT-dividend piece is treated more simply, with no wage, property, or income-phase-out limit. Section 199A was designed to give pass-through income a benefit roughly comparable to the lower corporate tax rate. For REIT investors, the relevant part is the clean, broadly available 20% deduction on qualified REIT dividends. Because tax provisions change, confirm the current rules with your tax advisor before relying on them.
How much does the QBI deduction lower my tax on REIT dividends?
The deduction reduces the income you are taxed on by 20% of your qualified REIT dividends, which lowers the effective rate on that income by about a fifth. At the 37% top federal bracket, deducting 20% means you are effectively taxed on only 80% of the dividend, producing an effective rate of roughly 29.6% (37% times 0.8). At a 32% bracket the effective rate would be about 25.6%, and so on down the brackets — the proportional cut is the same. For example, $10,000 of qualified REIT dividends produces a $2,000 deduction, so you are taxed on $8,000 of that income. The benefit is a deduction against income, not a credit against tax, so its dollar value depends on your bracket. There is also an overall cap (20% of taxable income minus net capital gain) that can limit the deduction in some years. Confirm the exact figures with your CPA.
Does the QBI deduction on REIT dividends have an income limit?
No — the REIT-dividend portion of the Section 199A deduction has no income-based phase-out. This is one of the most important features of the rule. On the business side of Section 199A, the deduction is reduced or limited by the wages a business pays, the basis of its property (the UBIA limit), and, for certain service businesses, by income thresholds that phase the benefit out for high earners. None of those limits apply to qualified REIT dividends. A high-income investor and a modest-income investor both deduct 20% of their qualified REIT dividends, as long as they claim the QBI deduction. The only overall constraint is that the total QBI deduction cannot exceed 20% of taxable income minus net capital gain. This broad availability is what makes the REIT-dividend deduction unusually clean. Still, because the rules can change and your return is unique, verify the current treatment with your tax advisor.
Which part of a REIT dividend qualifies for the 20% deduction?
The 20% deduction applies to the ordinary, qualified REIT-dividend portion of your distribution — the large slice that is taxed at ordinary income rates because the REIT paid no corporate tax. A REIT distribution can be made up of several components, each reported separately on Form 1099-DIV: ordinary (non-qualified) dividends, qualified dividends, capital-gain distributions, and return of capital. The Section 199A deduction targets the ordinary REIT-dividend slice — typically the largest part. It does not apply to the capital-gain distribution portion (taxed at capital-gains rates), the return-of-capital portion (not currently taxed; it reduces your basis), or the smaller qualified-dividend portion (already taxed at capital-gains rates). Your 1099-DIV will show a specific figure for the Section 199A dividends. So only the ordinary REIT-dividend component qualifies, which is fortunately the part of REIT income that needs the relief most. Confirm the qualifying amount with your CPA.
Is the QBI deduction on REIT dividends permanent?
Yes — as of June 2026, the Section 199A deduction, including the 20% deduction on qualified REIT dividends, was made permanent by the 2025 One Big Beautiful Bill Act (OBBBA). Before that legislation, the entire Section 199A deduction had been scheduled to sunset at the end of 2025, which created uncertainty for investors and business owners who relied on it. The OBBBA removed that sunset, so the deduction continues to be available rather than expiring. That said, tax law can always change in the future through new legislation, and the precise mechanics can be adjusted. So while the deduction is currently permanent, you should not assume the rules are frozen forever. This is educational information, not tax advice. Verify the current rules with your tax advisor before relying on the deduction for planning, since the law as it applies to your specific situation is what ultimately governs your return.
Do I get the QBI deduction on REIT dividends inside an IRA?
No — the QBI deduction provides no benefit on REIT dividends held inside a tax-advantaged account such as a traditional IRA, Roth IRA, or 401(k). The reason is structural: inside those accounts, REIT dividends are not taxed as they are received, so there is no current taxable income for the 20% deduction to reduce. In a traditional IRA, your eventual withdrawals are taxed as ordinary income with no REIT-dividend deduction applied; in a Roth IRA, qualified withdrawals are tax-free regardless of the deduction. Either way, the §199A benefit simply does not exist inside the wrapper. This is why the deduction creates a placement trade-off: holding REITs in an IRA shelters their mostly ordinary income from annual tax, but forfeits the 20% deduction a taxable account would capture. Which approach is better depends on your bracket, allocation, and account mix. Coordinate the decision with your CPA, since this is educational, not advice.
Should I hold REITs in a taxable account to get the deduction?
Not necessarily — the deduction is one factor among several, and holding REITs in a taxable account to capture it involves a genuine trade-off. On one hand, a taxable account is the only place the 20% deduction applies, which lowers the effective rate on the ordinary REIT-dividend income. On the other hand, REIT dividends are mostly ordinary income, which is tax-inefficient, so there is a competing argument to shelter that income in a tax-advantaged account where it is not taxed each year — even though doing so forfeits the deduction. Neither consideration automatically wins. The right placement depends on your tax bracket, the size of your REIT allocation, the mix of accounts you hold, and how much of your distributions arrive as return of capital or capital-gain distributions. Because the answer is specific to your situation, model it with your CPA rather than applying a blanket rule. This is educational information, not advice.
Is there a cap on the QBI deduction?
Yes — there is an overall ceiling. The total Section 199A deduction, combining the business component and the REIT-dividend component, cannot exceed 20% of your taxable income minus your net capital gain. For most investors with ordinary REIT dividends and a typical income mix, this cap is not binding, and you receive the full 20% on your qualified REIT dividends. But in certain years the cap can limit the deduction — for example, a year with very little other taxable income, or a year with large capital gains that reduce the base the cap is calculated against. The cap is applied at the return level, so it interacts with everything else on your tax return. Because of that, the actual deduction you can use in a given year may be less than a simple 20% of your REIT dividends. Your CPA applies the cap correctly in the context of your full return. Confirm your specific figure with them.
Do I have to itemize to claim the QBI deduction?
No — the QBI deduction is separate from the choice between the standard deduction and itemized deductions. You can claim the 20% deduction on your qualified REIT dividends whether you take the standard deduction or itemize your other deductions. It is a distinct, below-the-line deduction that reduces your taxable income, and it is available to eligible taxpayers regardless of how they handle the rest of their return. This is one reason the REIT-dividend deduction is so broadly useful — it is not gated behind itemizing. You simply report the qualified REIT-dividend amount from your Form 1099-DIV on the appropriate QBI forms, and the deduction flows through to reduce your taxable income, subject to the overall cap of 20% of taxable income minus net capital gain. Because the mechanics still run through your full return, your CPA should confirm the figures. This is educational information, not tax advice — verify the current rules with your tax advisor.
How do I find the qualifying REIT-dividend amount?
You find it on Form 1099-DIV, the form a REIT (or your brokerage) sends you reporting your distributions. The 1099-DIV breaks the distribution into components, and there is a specific box for Section 199A dividends — that figure is the qualified REIT-dividend amount eligible for the 20% deduction. The form also separates out total ordinary dividends, qualified dividends, capital-gain distributions, and any nondividend (return-of-capital) amounts, so you can see the full character of what you received. When you or your CPA prepare your return, the Section 199A dividend figure flows onto the QBI forms, where the 20% deduction is calculated and the overall cap is applied. If you hold REITs through a fund or ETF, the fund reports the Section 199A-eligible portion to you as well. Because reading the 1099-DIV correctly matters, have your CPA confirm which figures qualify. This is educational information, not tax advice — verify the current rules with your tax advisor.
Does the deduction apply to REIT capital-gain distributions?
No — the 20% Section 199A deduction does not apply to the capital-gain distribution portion of a REIT payout. Capital-gain distributions, which a REIT pays out when it realizes long-term gains on property sales, are already taxed at the lower long-term capital-gains rates, so they are not part of the ordinary REIT-dividend slice the deduction targets. The deduction applies only to the ordinary, qualified REIT-dividend portion that would otherwise be taxed at full ordinary rates. Similarly, the deduction does not apply to the return-of-capital portion (which is not currently taxed but reduces your cost basis) or to the smaller qualified-dividend portion (already taxed at capital-gains rates). Your Form 1099-DIV separates these components so the right treatment is applied to each. So among the four parts of a REIT distribution, only the ordinary REIT-dividend component gets the 20% deduction. Confirm the breakdown with your CPA, since this is educational, not advice.
How does the deduction interact with return of capital?
The return-of-capital portion of a REIT distribution and the 20% deduction are separate features that affect different parts of your distribution. Return of capital is not currently taxed — instead it reduces your cost basis, deferring tax until you sell. Because it is not taxed as ordinary income when received, it is not part of the qualified REIT-dividend slice that the 20% deduction targets. So the deduction applies to the ordinary REIT-dividend component, while return of capital is handled under the basis rules. In practice, a REIT distribution can include both: some ordinary REIT dividends (eligible for the 20% deduction) and some return of capital (reducing basis). Your Form 1099-DIV reports each component separately. Tracking your basis for the return-of-capital portion and applying the 20% deduction to the ordinary portion are two distinct tasks, both of which your CPA handles. This is educational information, not tax advice — verify the current rules with your tax advisor.
Does the QBI deduction apply to REIT funds and ETFs?
Yes — qualified REIT dividends passed through by a mutual fund or ETF that holds REITs are generally eligible for the 20% Section 199A deduction, just as direct REIT dividends are. When a fund distributes REIT dividends to you, it reports the Section 199A-eligible portion on your Form 1099-DIV, and you can claim the 20% deduction on that amount in a taxable account, subject to the overall cap. So you do not have to own REITs directly to capture the deduction — a REIT fund or ETF held in a taxable account can deliver the same benefit on the qualified REIT-dividend portion it distributes. As always, the deduction provides no benefit inside a tax-advantaged account, where the dividends are not currently taxed. The specifics of how a fund reports Section 199A dividends can vary, so check your 1099-DIV and confirm the qualifying amount with your CPA. This is educational information, not tax advice — verify the current rules with your tax advisor.
How does Baker 1031 help me understand the REIT QBI deduction?
We help investors understand, educationally, how the 20% Section 199A deduction applies to REIT dividends — what the QBI deduction is, how it reaches the ordinary REIT-dividend portion without a wage or income limit, how to estimate the benefit, why it works only in taxable accounts, and how placement creates a trade-off — so you can have an informed conversation with your tax advisor. REIT and non-traded-REIT interests are offered through the broker-dealer, Aurora Securities, Inc. (member FINRA/SIPC), and any recommendation follows a suitability review; non-traded and private REITs typically require accredited or otherwise suitable investors, while publicly traded REITs trade through ordinary brokerage. Baker 1031 does not provide tax or legal advice — this material is educational, not tax advice. Your CPA confirms how the deduction applies to your situation, applies the overall cap, models account placement, and tracks rule changes; verify the current rules with your tax advisor. Yields and returns are never promised, and past performance doesn't guarantee future results.
Glossary
- QBI Deduction
- The Section 199A deduction of up to 20% of qualifying pass-through income.
- Section 199A
- The tax-code provision creating the QBI deduction.
- Qualified REIT Dividend
- The ordinary REIT-dividend portion eligible for the 20% deduction.
- Ordinary Dividend
- The REIT-dividend portion taxed at ordinary income rates.
- Effective Rate
- The real federal rate after the deduction, about 29.6% at the top bracket.
- Wage/UBIA Limit
- Business-side limits that do not apply to REIT dividends.
- Income Phase-Out
- A high-earner limit on the business side, absent for REIT dividends.
- Taxable-Income Cap
- The overall ceiling of 20% of taxable income minus net capital gain.
- Form 1099-DIV
- The form reporting REIT distribution components, including Section 199A dividends.
- Below-the-Line Deduction
- A deduction available whether or not you itemize.
- OBBBA
- The 2025 law that made the Section 199A deduction permanent.
- Taxable Account
- The only account type where the QBI deduction benefits REIT dividends.
- Tax-Advantaged Account
- An IRA or 401(k) where the QBI deduction provides no benefit.
- Capital-Gain Distribution
- A REIT payout taxed at capital-gains rates, not QBI-eligible.
- Return of Capital
- A distribution that reduces basis, not QBI-eligible.
- Pass-Through Income
- Business income taxed at the owner level, the basis for Section 199A.
Sources & References
- IRS. Qualified Business Income Deduction (Section 199A)
- IRS. About Form 1099-DIV, Dividends and Distributions
- U.S. Securities and Exchange Commission. Investor.gov — Real Estate Investment Trusts (REITs)
- Nareit. What's a REIT (Real Estate Investment Trust)?
Disclosures
This article is published by Baker 1031 Investments, LLC for general educational purposes for accredited investors and is not an offer to sell or a solicitation of an offer to buy any security, nor is it tax, legal, accounting, or investment advice or a recommendation. Any securities offering is made solely through a sponsor’s private placement memorandum (PPM) following a suitability determination. Securities offered through Aurora Securities, Inc. (ASI), member FINRA / SIPC; Baker 1031 Investments is independent of ASI.
Oil & gas mineral and royalty interests and DST programs are speculative, illiquid securities sold only to verified accredited investors and involve substantial risk, including possible loss of principal, commodity-price and production-decline risk, lack of control, and the risk that an intended 1031 exchange fails to qualify for tax deferral. Whether a particular interest qualifies as like-kind real property is a fact-specific legal determination that varies by state and by the terms of the instrument. Tax results depend on your individual circumstances. Consult your own CPA and attorney before acting. Past performance does not guarantee future results.
