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Using REITs To Your Advantage

A Real Estate Investment Trust (“REIT”) is an exchange-traded security that trades like an equity and invests directly in income producing real estate assets.  Canadian REIT must comply with certain requirements in order to receive favorable tax treatment, including:

  • Investing at least 75% of its assets in real estate
  • Deriving at least 75% of gross income from rents or mortgage interest
  • Distributing at least 90% of taxable income to shareholders through dividends

REITs are generally classified by the types of real estate assets they invest in.