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Level 2
July 8, 2020

Treatment of Sale of Foreign REIT

  • July 8, 2020
  • 1 reply
  • 11 views

Hello - I have a client that invested in a Foreign REIT (Thailand) using a foreign brokerage account I believe the correct treatment to be the following:

Dividend Distributions - Ordinary nonqual dividends, the statement is clear that these payments are not considered return of capital. Not eligible for 199A due to being a foreign REIT investing outside the US.

Sale of the REIT - capital gains reported on Schedule D.

am i missing anything?

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1 reply

sjrcpa
Level 15
July 9, 2020

Sounds correct to me. There may be foreign tax and foreign currency exchange/fluctuation issues, too.

The more I know the more I don’t know.