REIT s ... have any of you any personal experiences you could share with me.?

Answer 1

The tax consequences of REITs are an important consideration. Whereas dividends from most other companies receive favorable tax treatment, dividends of REITs are taxed at the full tax rate. REITs over the past 5 years or so have been hot investments yielding excellent returns. There are REITs that invest in various aspects of real estate from malls to office buildings to apartments to hospitals to storage bins. One thing to keep in mind is that a down turn in the economy can have a very adverse impact on REITs. Other stocks also.

Certainly REITs have a place in a well balanced portfolio. There are index funds that are REIT index funds also that you can invest in as well as mutual funds.

Answer 2

I like REITs as an income producing stock. The only problem in a taxable account is the dividends are not "qualified dividends." REITs don't pay income tax, they pass at least 90% of their profits to share holders in the dividends, so the dividend is ordinary income.

As a sector, REITs are overvalued at this point, so do your homework, if you plan to purchase stock.
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Answer 3

If you buy REITs, don't expect to do your tax return until April. Regular companies must send you their 1099s by Jan 31st. REITS have permission to delay theirs so you will get one around mid Feb., but don't do your taxes yet. A revised tax form from REITS may arrive later. Most of mine have come by March 31, but one year, the 3rd revised tax form arrived around April 3rd.

Answer 4

You may want to consider owning a REIT in a tax deferred vehicle such as your retirement account (IRA, 401(K), etc.). This money is allowed to compoud within your retirement account. The income to come from the shares are put into your account and may be taxed when withdrawn from your retirement account.