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2. reits don't have to pay corporate income taxes, but in return they face what major restriction? a) they have to hold at least 50% of their assets in government bonds. b) they have to sell any properties they develop within four years of the date of completion of construction. c) their directors must agree not to accept invitations to spend the night in the white house, except under a republican administration. d) they have to pay out 90% or more of their annual taxable income in dividends.



Answer :

REITS don't have to pay corporate income taxes, but in return they have to hold at least 50% of their assets in government bonds.

What is REIT?

  • The term "real estate investment trust" (REIT) refers to a business that owns, manages, or finances properties that generate revenue.
  • Investors receive a consistent income stream from REITs, but nothing in the way of capital growth.
  • Since most REITs are publicly traded like stocks, they are quite liquid (unlike physical real estate investments).
  • The majority of real estate property types are invested in by REITs, including apartment complexes, cell towers, data centers, hotels, offices, retail centers, and warehouses.

To learn more about REIT visit:

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