A »REITs are taxed as pass-through entities, distributing at least 90% of taxable income to shareholders, avoiding corporate-level taxation. They generate returns through rental income, property sales, and dividends. Shareholders are taxed on received dividends, making REITs an attractive option for income-seeking investors due to their relatively stable returns and tax efficiency.

A »Real Estate Investment Trusts (REITs) are taxed as pass-through entities, meaning they avoid corporate tax by distributing at least 90% of taxable income as dividends, which are taxed as ordinary income to investors. REITs generate returns through rental income and property appreciation. For example, if a REIT owns an apartment complex, it earns rental income and potentially increases in value, both contributing to investor returns.

A »REITs are taxed as pass-through entities, avoiding corporate-level taxation if they distribute at least 90% of taxable income to shareholders. They generate returns through rental income, property sales, and interest on mortgages or other investments, distributing income to shareholders as dividends.