Quote:
Originally Posted by Cowboy89
Don't forget that the dividend returns you get from a REIT like boardwalk REIT is treated more favorably taxwise than income from a rental property. 3.0% before tax return from a REIT > 3% return from an investment property.
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Disagree. Rental income can be shielded by depreciating the building component. It reduces your cost basis, so you pay the tax when you sell. In exactly the same way, the return of capital portion of a REIT distribution shields current income, but reduces your cost basis, so you pay the tax when you sell.
I've done both and they're extremely comparable.