An Investor Bought 100 Shares of a REIT for $54

question 34

Essay

An investor bought 100 shares of a REIT for $54 a share and two years later sold the shares for $62. The REIT annually distributed $4.00 per share ($400)consisting of $2.00 ($200)return of capital, $1.20 ($120)in income, and $0.80 ($80)in long-term capital gains. The investor's income tax bracket is 30 percent. The long-term capital gains tax rate is 15 percent. What is the investor's second year tax obligation?

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Definitions:

Persuasive Tactics

Strategies used to convince or influence people to believe, do, or buy something.

Social Media

Platforms and technologies that enable users to create, share, and exchange content or participate in social networking.

Manipulating

The act of skillfully handling, controlling, or using something or someone often with a negative connotation.

Strategic Planning Session

A structured meeting process intended for organizations to set priorities, focus energy and resources, establish agreements, and plan their strategic goals.