Most discussions of REIT taxation focus on the federal picture — ordinary-income treatment of most REIT dividends, the 20% Section 199A deduction on qualified REIT dividends, and the breakdown reported on Form 1099-DIV. But for many investors, state income tax is the second layer that quietly reduces the cash they actually keep. States generally tax REIT dividends as ordinary income at the state's own rate, but the treatment varies widely: some states impose high rates, others impose none, and most do not mirror the federal 20% deduction at the state level. Where you live, where the income is sourced, and how you hold your REIT shares all affect your net (after-tax) yield. This guide explains why state treatment of REIT dividends varies, how high-tax and no-income-tax states differ, the multistate sourcing issues that can arise, the effect on net yield, and how to plan around state taxes. State tax rules vary by state and change over time — this is general educational information, not tax advice, so verify the current rules with your tax advisor.
State Tax Treatment Varies
The first thing to understand about state taxation of REIT dividends is that there is no single national answer — treatment varies meaningfully from state to state. As a general matter, states that impose an income tax treat REIT dividends as ordinary dividend income, taxed at the state's ordinary income rate rather than at a preferential rate. Because most REIT ordinary dividends are already taxed federally as ordinary income (the REIT itself paid no corporate tax), the state layer typically follows that ordinary-income character.
What varies is the rate, the conformity, and the details. State income tax rates range from zero to over 13%, so the same REIT dividend can be taxed very differently depending on the investor's state of residence. Conformity also varies: most states do not allow the federal 20% Section 199A deduction on qualified REIT dividends when computing state taxable income, so the state may tax the full dividend even though the federal calculation allows a deduction. A handful of states have their own rules, exclusions, or partial conformity, which is why the treatment is genuinely state-specific.
So state taxation of REIT dividends is not uniform — it depends on whether your state taxes income at all, the rate it applies, and whether it conforms to federal deductions. State tax treatment varies — states that impose income tax generally treat REIT dividends as ordinary income at the state rate, rates span roughly zero to over 13%, and most states do not mirror the federal 20% Section 199A deduction at the state level, so the state may tax the full dividend. Conformity and details differ by state. Understanding that treatment varies is the starting point. State treatment of REIT dividends varies widely: most income-tax states tax them as ordinary income at the state rate and do not follow the federal 20% deduction, so the rules are genuinely state-specific. Verify your state's current rules with your tax advisor.
High-Tax vs. No-Tax States
The starkest contrast in state taxation of REIT dividends is between high-tax states and states with no income tax. High-tax states — California, New York, and New Jersey are common examples — impose top marginal income tax rates that can reach into the high single digits or low double digits, and they generally apply those rates to REIT dividends as ordinary income. For a resident of one of these states, state tax can meaningfully reduce the after-tax yield on a REIT holding, stacking on top of the federal tax.
At the other end of the spectrum are states with no broad personal income tax — Florida, Texas, Nevada, Washington, and Tennessee among them. A resident of one of these states generally owes no state income tax on REIT dividends at all, so the entire state layer disappears and the after-tax yield is correspondingly higher (subject only to federal tax). Most states fall somewhere in between, with moderate rates. The point is that two investors holding the identical REIT can keep very different amounts of the same dividend, purely because of where they live.
So where you live can materially change what you keep from a REIT dividend — high-tax states take a meaningful slice, while no-income-tax states take none. High-tax versus no-tax states — high-tax states (such as California, New York, and New Jersey) applying high ordinary rates to REIT dividends, versus no-income-tax states (such as Florida, Texas, Nevada, Washington, and Tennessee) imposing no state tax at all, with most states in between — produce very different after-tax outcomes for the identical REIT. Residency drives the result. Understanding the spread frames the planning. High-tax states (California, New York, New Jersey) tax REIT dividends at high ordinary rates, while no-income-tax states (Florida, Texas, Nevada, Washington, Tennessee) impose none — so identical REIT dividends can yield very different after-tax amounts depending on residency.
Two investors can hold the exact same REIT and keep very different amounts of the same dividend — the difference is simply which state they call home.
Multistate Investor Issues
For investors with ties to more than one state, REIT dividend taxation can get more complicated. The general rule for portfolio income like dividends is that it is taxed by the investor's state of residence — so a REIT dividend is typically sourced to and taxed by the state where you live, regardless of where the REIT's underlying properties are located. This is different from, say, rental income from a directly owned property, which is generally sourced to the state where the property sits.
Complications arise for investors who move during the year, split time between states, or are treated as residents of more than one state. Part-year residents may owe tax on the portion of dividends received while resident in each state, and dual-residency situations can create the risk of the same income being claimed by two states (often mitigated by credits for taxes paid to another state). Trusts and certain entities holding REIT shares can also raise their own multistate sourcing questions. These situations are fact-specific and are exactly where a tax advisor's guidance matters.
So multistate situations turn a simple residence-based rule into a more nuanced sourcing question — especially for movers, part-year residents, and entities. Multistate investor issues — dividends generally being sourced to and taxed by the investor's state of residence (unlike property rental income, sourced where the property sits), with complications for part-year residents, those who move mid-year, dual-residency situations, and trusts or entities holding REIT shares — add nuance for investors with ties to more than one state. Credits for taxes paid elsewhere often mitigate double taxation. These cases are fact-specific. REIT dividends are generally taxed by your state of residence, but multistate situations — moving mid-year, part-year residency, dual residency, or entity ownership — create sourcing nuances best handled with your tax advisor.
Impact on Net Yield
State tax matters because it directly affects net (after-tax) yield — the return you actually keep, not the headline distribution rate. A REIT advertising a given dividend yield delivers that yield only on a pre-tax basis. After federal tax (most REIT dividends taxed as ordinary income, partly offset by the 20% Section 199A deduction in taxable accounts) and after state tax, the effective yield in your pocket can be noticeably lower — and the state layer is what varies most by investor.
Consider the difference qualitatively: a high-tax-state resident in a top bracket might lose a substantial combined federal-and-state share of each ordinary REIT dividend, while a no-income-tax-state resident loses only the federal share. Because most states do not allow the federal 20% deduction, the state often taxes a larger base than the federal calculation. The practical implication is that comparing REITs (or comparing a REIT to other income investments) on pre-tax yield alone can be misleading — the after-tax comparison depends on your state and bracket.
So the real measure of a REIT's income value to you is its after-tax yield, and state tax is a key, investor-specific part of that calculation. Impact on net yield — state tax reducing the after-tax return you keep, with high-tax-state residents losing a larger combined federal-and-state share than no-income-tax-state residents, and most states taxing a larger base because they do not allow the federal 20% deduction — means pre-tax yield alone can mislead. The after-tax comparison depends on your state and bracket. Understanding net yield reframes how you evaluate REIT income. State tax reduces a REIT's net (after-tax) yield, and because the state layer varies most by investor — and most states don't allow the 20% deduction — comparing REITs on pre-tax yield alone can mislead; evaluate after-tax yield for your situation.
- States generally tax REIT dividends as ordinary income at the state rate, but treatment varies widely — and most states do not mirror the federal 20% Section 199A deduction.
- High-tax states (California, New York, New Jersey) take a meaningful slice, while no-income-tax states (Florida, Texas, Nevada, Washington, Tennessee) take none.
- REIT dividends are generally taxed by your state of residence, but moving, part-year residency, and dual residency raise multistate sourcing issues.
- State tax directly affects net (after-tax) yield, so account placement (sheltering REITs in IRAs) and residency are part of REIT income planning.
Planning Around State Taxes
Because state tax can meaningfully reduce REIT income, there are several general planning considerations investors discuss with their advisors. The most common is account placement: because REIT dividends are mostly ordinary income, holding REITs inside a tax-advantaged account (a traditional or Roth IRA, for example) can shelter those dividends from current federal and state tax, while keeping more tax-efficient assets in taxable accounts. This 'asset location' approach is a general strategy, not a recommendation for any specific investor.
Other considerations include residency planning (some investors weigh the overall tax climate of a state, of which REIT-dividend treatment is one small part), being mindful that the federal 20% deduction generally helps only in taxable accounts and often is not mirrored at the state level, and coordinating REIT holdings with the rest of a portfolio for after-tax efficiency. None of these is a promise of a particular outcome — they are general educational ideas whose value depends entirely on your state, bracket, and circumstances, which is why they belong in a conversation with your CPA.
So planning around state taxes is mostly about account placement and after-tax awareness — general strategies to coordinate with your tax advisor, not guarantees. Planning around state taxes — using account placement (sheltering ordinary REIT dividends in IRAs) as the most common general strategy, weighing residency and overall state tax climate, recognizing that the federal 20% deduction helps mainly in taxable accounts and often isn't mirrored by states, and coordinating REITs with the broader portfolio for after-tax efficiency — can help, but outcomes depend on your situation. These are general ideas, not advice. Coordinate them with your CPA. General planning around state taxes centers on account placement (sheltering REIT dividends in IRAs) and after-tax awareness; these are general educational strategies whose value depends on your state and bracket — verify the current rules with your tax advisor.
The single most common move investors discuss is simply where the REIT lives — sheltering ordinary REIT dividends inside an IRA can sidestep both the federal and state tax bite each year.
Putting the State Tax Picture Together
Bringing the pieces together, the state taxation of REIT dividends is best understood as a second layer that sits on top of the federal rules and varies by investor. The federal layer is roughly the same for everyone (ordinary-income treatment, the 20% deduction in taxable accounts, the 1099-DIV breakdown), but the state layer depends on where you live, whether your state taxes income, the rate it applies, and whether it follows federal deductions. That is why two investors in the same REIT can experience very different after-tax results.
Practically, this means three habits are worth adopting. First, evaluate REIT income on an after-tax basis for your own state and bracket, not just on the headline yield. Second, pay attention to account placement, since sheltering ordinary REIT dividends in a tax-advantaged account can neutralize much of the state tax question. Third, treat any change — moving states, a new entity structure, or a change in state law — as a trigger to revisit the analysis with your advisor, since state rules change and are fact-specific.
So the state tax picture comes down to layering the variable state rules on top of the federal ones and managing the result through after-tax thinking and account placement. Putting the state tax picture together — recognizing that the federal layer is broadly uniform while the state layer varies by residence, rate, and conformity, and responding with after-tax evaluation, smart account placement, and a habit of revisiting the analysis when circumstances change — turns a complex topic into a manageable one. The result is investor-specific. Coordinating with your CPA keeps it current. The state tax picture is a variable second layer atop the federal rules; manage it by evaluating REIT income after-tax, using account placement, and revisiting the analysis when you move or rules change — always with your tax advisor.
How Baker 1031 Helps You Understand State Taxation of REIT Dividends
Baker 1031 Investments helps investors understand how state taxation affects REIT dividends — why treatment varies by state, how high-tax and no-income-tax states differ, the multistate sourcing issues that can arise, the impact on net (after-tax) yield, and the general planning considerations like account placement — so you can evaluate REIT income realistically for your own situation.
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; the state taxation of REIT dividends is general and varies by state, so your CPA handles how the rules apply to your specific situation, and you should verify the current rules with your tax advisor. The planning ideas we discuss — account placement, after-tax awareness, coordinating REITs with your portfolio — are general educational concepts, not promises of any particular outcome, and allocation or yield figures are illustrative rather than recommendations. Yields and returns are never promised; past performance does not guarantee future results. Our role is to help you understand the state tax layer clearly and access suitable REIT offerings when appropriate, coordinating with your tax professionals.
Frequently Asked Questions
How are REIT dividends taxed at the state level?
States that impose an income tax generally tax REIT dividends as ordinary dividend income at the state's ordinary income rate, rather than at a preferential rate. Because most REIT ordinary dividends are already taxed federally as ordinary income (the REIT itself paid no corporate tax), the state layer typically follows that ordinary-income character. What varies is the rate and the conformity: state income tax rates range from zero to over 13%, and most states do not allow the federal 20% Section 199A deduction on qualified REIT dividends when computing state taxable income, so the state may tax the full dividend even though the federal calculation allows a deduction. A few states have their own rules, exclusions, or partial conformity. So the general pattern is ordinary-income treatment at the state rate, but the specifics are genuinely state-specific. Baker 1031 does not provide tax advice — verify the current rules for your state with your tax advisor, as they vary and change.
Why does state treatment of REIT dividends vary so much?
State treatment varies because each state sets its own income tax system — including whether it taxes income at all, the rate it applies, and whether it conforms to federal tax rules. Some states impose no broad personal income tax, so REIT dividends face no state tax there. States that do tax income apply rates that range from low single digits to over 13%, and they differ in how closely they follow the federal code. A key example is the federal 20% Section 199A deduction on qualified REIT dividends: most states do not mirror it at the state level, so they tax a larger base than the federal calculation. Because conformity, rates, and the existence of an income tax all differ, the same REIT dividend can be taxed very differently depending on the investor's state. So variation is built into the fact that fifty states make their own rules. Confirm your state's treatment with your tax advisor.
Which states tax REIT dividends the most?
High-tax states with steep top marginal income tax rates generally tax REIT dividends the most, since they apply those rates to the dividends as ordinary income. Commonly cited examples include California, New York, and New Jersey, whose top rates can reach into the high single digits or low double digits. For a top-bracket resident of one of these states, the state tax can meaningfully reduce the after-tax yield on a REIT holding, stacking on top of the federal tax. The exact rate depends on the state's brackets and the investor's total income, and most of these states do not allow the federal 20% deduction at the state level, so the state taxes the full dividend. So if you live in a high-tax state, state tax is a real factor in your REIT income. Because rates and brackets change, verify the current figures for your state with your tax advisor rather than relying on general examples.
Which states don't tax REIT dividends?
States without a broad personal income tax generally do not tax REIT dividends at all. Commonly cited examples include Florida, Texas, Nevada, Washington, and Tennessee. A resident of one of these states typically owes no state income tax on REIT dividends, so the entire state layer disappears and the after-tax yield is correspondingly higher — subject only to federal tax. Note that some of these states have historically taxed certain investment income or have other taxes, and rules can change, so the picture isn't always perfectly clean. The broader point is that residency drives the result: two investors holding the identical REIT can keep very different amounts of the same dividend purely because of where they live. So a no-income-tax state removes the state layer on REIT dividends. Because state laws change, confirm the current treatment in your state with your tax advisor before relying on it for planning.
Do states follow the federal 20% deduction on REIT dividends?
Generally, no — most states do not mirror the federal 20% Section 199A deduction on qualified REIT dividends when computing state taxable income. State conformity to the federal code varies, but the common pattern is that a state taxes the full REIT dividend as ordinary income without allowing the 20% deduction that reduces the federal calculation. That means the state often taxes a larger base than the federal layer does. A handful of states may conform more closely or have their own treatment, but you should not assume your state allows the deduction. This is one reason the after-tax math on REIT dividends can be less favorable at the state level than federal-only analysis suggests. The federal 20% deduction also generally applies only to qualified REIT dividends held in taxable accounts. So treat the federal 20% deduction as a federal benefit that usually does not carry over to your state return — and verify your state's specific conformity with your tax advisor.
How are REIT dividends sourced for state tax purposes?
For state tax purposes, REIT dividends are generally treated as portfolio income and sourced to — and taxed by — the investor's state of residence, regardless of where the REIT's underlying properties are located. This differs from rental income on a directly owned property, which is generally sourced to the state where the property sits. So if you live in one state and the REIT owns buildings in many others, your state of residence typically taxes the dividend. Complications arise for investors who move during the year (part-year residency), split time between states, or are treated as residents of more than one state, where sourcing and credits for taxes paid to another state come into play. Trusts and certain entities holding REIT shares can raise their own sourcing questions. So the default is residence-based taxation of REIT dividends, with nuance for multistate situations. These cases are fact-specific — confirm the sourcing for your situation with your tax advisor.
What happens if I move to another state during the year?
If you move during the year, you're generally treated as a part-year resident of each state, and the timing of your REIT dividends matters. As a general rule, each state taxes the portion of dividend income you received while you were a resident there, so dividends paid before your move are taxed by the old state and those paid after by the new one. The specifics depend on each state's part-year rules, how they define residency, and the dates involved. Moving from a high-tax state to a no-income-tax state mid-year can reduce the state tax on dividends received after the move, while the reverse increases it. Dual-residency situations can create the risk of two states claiming the same income, usually mitigated by credits for taxes paid to another state. So a move splits the year and changes the state tax on your REIT dividends going forward. Because these rules are fact-specific and vary by state, coordinate the timing and reporting with your tax advisor.
How does state tax affect my REIT's net yield?
State tax reduces a REIT's net (after-tax) yield — the income you actually keep — on top of federal tax. A REIT's advertised dividend yield is a pre-tax figure. After federal tax (most REIT dividends taxed as ordinary income, partly offset by the 20% Section 199A deduction in taxable accounts) and after state tax, the effective yield in your pocket can be noticeably lower. The state layer is what varies most by investor: a top-bracket resident of a high-tax state loses a larger combined federal-and-state share of each ordinary dividend, while a no-income-tax-state resident loses only the federal share. Because most states don't allow the 20% deduction, the state often taxes a larger base. The practical takeaway is that comparing REITs (or a REIT to other income investments) on pre-tax yield alone can mislead — the meaningful comparison is after-tax, for your own state and bracket. So evaluate REIT income on an after-tax basis. Your tax advisor can help you run the numbers.
Can I avoid state tax on REIT dividends by holding them in an IRA?
Holding REITs inside a tax-advantaged account such as a traditional or Roth IRA is the most commonly discussed way to shelter REIT dividends from current tax, including state tax. Because REIT dividends are mostly ordinary income, they can be relatively tax-inefficient in a taxable account; placing them in an IRA generally defers (traditional) or potentially eliminates (Roth, on qualified distributions) current federal and state tax on those dividends while they remain in the account. This 'asset location' approach is a general educational strategy, not a recommendation for any particular investor, and the benefit depends on your overall situation, the type of account, and future tax rules. Note that the federal 20% deduction generally applies only to REIT dividends in taxable accounts, so sheltering in an IRA is a trade-off, not a free lunch. So an IRA can neutralize much of the state tax question on REIT dividends, but whether it's right for you depends on your circumstances — discuss it with your CPA.
Do all states tax REIT dividends as ordinary income?
Among states that impose an income tax, the general pattern is to treat REIT dividends as ordinary dividend income taxed at the state's ordinary rate, rather than at a preferential rate — mirroring the federal ordinary-income character of most REIT dividends. However, the details vary: states differ in their rates, their conformity to federal rules (such as whether they allow the 20% Section 199A deduction, which most do not), and any state-specific exclusions or treatments. States without a broad income tax don't tax the dividends at all. So while ordinary-income treatment at the state rate is the common baseline for income-tax states, you shouldn't assume every state treats REIT dividends identically. The character of the underlying distribution (ordinary dividend, capital-gain distribution, or return of capital, as reported on Form 1099-DIV) can also affect state treatment. So expect ordinary-income treatment as the norm in income-tax states, with variation in the specifics. Confirm your state's exact treatment with your tax advisor.
How do capital-gain distributions and return of capital affect state tax?
A REIT's distributions can include different components, reported on Form 1099-DIV: ordinary dividends, capital-gain distributions, and return of capital. State treatment can follow the federal character of each. Capital-gain distributions are generally taxed at the state's applicable rate on capital gains, which in many states is simply the ordinary rate (most states don't offer a preferential capital-gains rate), though a few do. Return of capital generally isn't currently taxed at either the federal or state level; instead it reduces your cost basis, which can increase a future taxable gain when you sell. Ordinary REIT dividends are taxed as ordinary income at the state rate. So the state tax on a REIT distribution depends partly on its composition, not just the headline amount. Because states vary in how they treat capital gains and basis, and because the 1099-DIV breakdown drives the analysis, the specifics are fact-specific. So review your 1099-DIV components with your tax advisor to understand the state treatment of each.
Does state tax on REIT dividends change my federal tax?
State tax on REIT dividends doesn't directly change the federal tax you owe, but the two layers interact in a few ways. Historically, state income taxes could be deducted on a federal return if you itemized, though the SALT (state and local tax) deduction has been subject to a cap, which limits that benefit for many taxpayers. So a high state tax bill doesn't automatically reduce your federal tax dollar-for-dollar. More fundamentally, federal and state are separate calculations: the federal layer applies ordinary-income treatment and the 20% Section 199A deduction (in taxable accounts), while the state layer applies its own rate and usually doesn't allow that deduction. Your total tax on a REIT dividend is the sum of the two. So think of state tax as an additional layer on top of federal, with a limited and capped interaction through the SALT deduction. Because SALT rules and caps change, verify the current interaction with your tax advisor for your situation.
Should where I live affect which REITs I buy?
Your state of residence affects the after-tax yield of any REIT you hold, but it usually shouldn't be the only factor in choosing investments. Because state tax on REIT dividends varies — meaningful in high-tax states, zero in no-income-tax states — a high-tax-state resident keeps less of the same dividend than a no-income-tax-state resident. That argues for paying attention to after-tax yield and, more practically, to account placement (sheltering ordinary REIT dividends in an IRA) rather than to changing which REITs you buy. The choice of specific REITs should still rest primarily on the underlying real estate, quality, diversification, fees, and how the holding fits your goals and risk tolerance. State tax is one input to the after-tax math, not a substitute for sound investment selection. So let your state inform how you hold REITs (account placement, after-tax thinking) more than which REITs you pick. Coordinate the tax side with your CPA and the suitability side with your advisor.
Do state tax rules on REIT dividends change?
Yes — state tax rules change regularly, which is a key reason any analysis should be revisited periodically. States adjust their income tax rates and brackets, change their conformity to the federal code (including whether they follow deductions like the 20% Section 199A deduction), and occasionally introduce or repeal taxes on certain investment income. A state that doesn't tax dividends today might change, and rates in high-tax states move over time. Your own situation can change too — moving states, a change in income that shifts your bracket, or a new entity structure holding your REIT shares. Because of all this, the after-tax picture for your REIT dividends isn't static. So treat any change in state law or in your circumstances as a trigger to revisit the analysis. This is general educational information, not advice, and it can become outdated — verify the current rules for your state with your tax advisor before relying on them for planning.
How does Baker 1031 help me understand state taxation of REIT dividends?
We help investors understand how state taxation affects REIT dividends — why treatment varies by state, how high-tax and no-income-tax states differ, the multistate sourcing issues that can arise, the impact on net (after-tax) yield, and general planning considerations like account placement — so you can evaluate REIT income realistically for your own situation. 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 — state taxation of REIT dividends is general and varies by state, so your CPA handles how the rules apply to you, and you should verify the current rules with your tax advisor. The planning ideas we discuss are general educational concepts, not promises, and yield figures are illustrative. Yields and returns are never promised; past performance doesn't guarantee future results.
Glossary
- REIT
- A company that owns, operates, or finances income-producing real estate.
- REIT Dividend
- The distribution a REIT pays shareholders from its income.
- Ordinary Income
- Income taxed at standard rates, the usual character of REIT dividends.
- State Income Tax
- A tax some states impose on residents' income, including dividends.
- Net (After-Tax) Yield
- The REIT yield you keep after federal and state tax.
- Section 199A Deduction
- The 20% federal deduction on qualified REIT dividends.
- Conformity
- How closely a state follows the federal tax code.
- No-Income-Tax State
- A state without a broad personal income tax (e.g., Florida, Texas).
- High-Tax State
- A state with high income tax rates (e.g., California, New York).
- Sourcing
- The rule determining which state taxes a given item of income.
- State of Residence
- The state that generally taxes a resident's portfolio dividends.
- Part-Year Resident
- Someone who was a resident of a state for only part of the year.
- Asset Location
- Placing assets in the account type that's most tax-efficient.
- Form 1099-DIV
- The form reporting the breakdown of a REIT's distributions.
- Return of Capital
- A distribution that reduces cost basis instead of being currently taxed.
- SALT Deduction
- The federal deduction for state and local taxes, subject to a cap.
Sources & References
- IRS. About Form 1099-DIV, Dividends and Distributions
- IRS. Qualified Business Income Deduction (Section 199A)
- 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.
