REITS, CHAPTER 20, INCOME HOUSING
TAX CREDIT, HISTORIC TAX CREDIT
QUESTIONS AND ANSWERS
Equity REIT - ANSWER-The majority of REITs are publicly traded ______ REITs.
_______ REITs own or operate income-producing real estate. The market and Nareit
often refer them as REITs.
Mortgage REIT - ANSWER-Provide financing for income-producing real estate by
purchasing or originating mortgages and mortgage-backed securities and earning
income from the interest on these investments.
Public Non-Listed REIT - ANSWER-Registered with the SEC but do not trade on
national stock exchanges.
Private REIT - ANSWER-Offerings that are exempt from SEC registration and whose
shares do not trade on national stock exchanges.
Sole Ownership - ANSWER-Ownership by one person; simple and inexpensive to
create; taxed as an individual
C Corporation - ANSWER-a separate legal entity that, in the eyes of the law, is separate
from its owners; limited liability to shareholders
Double Taxation - ANSWER-income taxed at corporate and individual level
S Corporation - ANSWER-Separate legal but not taxable entity; taxable income and
losses flow to shareholders; cannot have more than 35 shareholders
Mortgage REIT - ANSWER-A real estate investment trust that invests in mortgages of
real estate properties
Hybrid REIT - ANSWER-Invest in both equity REITS and mortgage REITS
Members [of an LLC] - ANSWER-LLC owners; Report profits/losses on their federal tax
returns, but not the LLC
Low-Income Housing Tax Credit - ANSWER-One of the federal government's primary
policy tools for encouraging the development and rehabilitation of affordable rental
housing
TAX CREDIT, HISTORIC TAX CREDIT
QUESTIONS AND ANSWERS
Equity REIT - ANSWER-The majority of REITs are publicly traded ______ REITs.
_______ REITs own or operate income-producing real estate. The market and Nareit
often refer them as REITs.
Mortgage REIT - ANSWER-Provide financing for income-producing real estate by
purchasing or originating mortgages and mortgage-backed securities and earning
income from the interest on these investments.
Public Non-Listed REIT - ANSWER-Registered with the SEC but do not trade on
national stock exchanges.
Private REIT - ANSWER-Offerings that are exempt from SEC registration and whose
shares do not trade on national stock exchanges.
Sole Ownership - ANSWER-Ownership by one person; simple and inexpensive to
create; taxed as an individual
C Corporation - ANSWER-a separate legal entity that, in the eyes of the law, is separate
from its owners; limited liability to shareholders
Double Taxation - ANSWER-income taxed at corporate and individual level
S Corporation - ANSWER-Separate legal but not taxable entity; taxable income and
losses flow to shareholders; cannot have more than 35 shareholders
Mortgage REIT - ANSWER-A real estate investment trust that invests in mortgages of
real estate properties
Hybrid REIT - ANSWER-Invest in both equity REITS and mortgage REITS
Members [of an LLC] - ANSWER-LLC owners; Report profits/losses on their federal tax
returns, but not the LLC
Low-Income Housing Tax Credit - ANSWER-One of the federal government's primary
policy tools for encouraging the development and rehabilitation of affordable rental
housing
