American Homes 4 Rent Announces Tax Treatment of 2020 Distributions

Rhea-AI Summary

American Homes 4 Rent (NYSE: AMH) announced the tax treatment for cash distributions for the 2020 tax year. For common shares and preferred shares, 54.88% is classified as Ordinary Dividend Income, 1.14% as Qualified Dividend Income, and 43.98% as Capital Gain Distributions. This information helps shareholders understand the tax implications of their investments. The tax return for the year ended December 31, 2020, is still pending, and investors are advised to consult their tax advisors for personalized advice.

Positive

• 54.88% of cash distributions classified as Ordinary Dividend Income, providing favorable tax treatment for investors.
• 43.98% classified as Capital Gain Distributions, potentially advantageous for tax reporting.

Negative

• Pending tax return for 2020 may introduce uncertainty for investors regarding final distributions.

CALABASAS, Calif., Jan. 29, 2021 /PRNewswire/ -- American Homes 4 Rent (NYSE: AMH) (the "Company"), a leading provider of high-quality single-family homes for rent, today announced the tax treatment of the Company's 2020 cash distributions.

For the tax year ended December 31, 2020, cash distributions for its:

• Common shares
• 6.5% Series D redeemable perpetual preferred shares
• 6.35% Series E redeemable perpetual preferred shares
• 5.875% Series F redeemable perpetual preferred shares
• 5.875% Series G redeemable perpetual preferred shares
• 6.25% Series H redeemable perpetual preferred shares
          
  were classified as follows:

 

Classification	Percent
Ordinary Dividend Income(1)	54.884368%
Qualified Dividend Income	1.135938%
Capital Gain Distributions(2)(3)	43.979694%
Total	100.000000%

(1)	100% of the Ordinary Dividend Income is treated as Internal Revenue Code (IRC) Section 199A Qualified REIT Dividend Income. Treasury Regulation §1.199A-3(c)(2)(ii) requires that shareholders hold their REIT shares for at least 45 days in order for the dividends to be treated as Section 199A Dividends.
(2)	46.811790% of the capital gain distributions is treated as unrecaptured IRC Section 1250 gain.
(3)	Pursuant to Treasury Regulation §1.1061-6(c), the Company is disclosing additional information related to the capital gain dividends reported on Form 1099-DIV, Box 2a, Total Capital Gain Distributions for purposes of IRC Section 1061. IRC Section 1061 is generally applicable to direct and indirect holders of "applicable partnership interests." The "One Year Amounts" and "Three Year Amounts" required to be disclosed are both zero with respect to the 2020 distributions, since all capital gain dividends relate to IRC Section 1231 gains. Shareholders should consult with their tax advisors to determine whether IRC Section 1061 applies to their capital gain dividends.

The Company's tax return for the year ended December 31, 2020, has not yet been filed. As a result, the income tax classification for the distributions discussed above has been calculated using the best available information as of the date of this release.

The Company encourages shareholders to consult with their own tax advisors as to the specific tax treatment of these distributions.

About American Homes 4 Rent

American Homes 4 Rent (NYSE: AMH) is a leader in the single-family home rental industry and "American Homes 4 Rent" is fast becoming a nationally recognized brand for rental homes, known for high-quality, good value and tenant satisfaction. We are an internally managed Maryland real estate investment trust, or REIT, focused on acquiring, developing, renovating, leasing, and operating attractive, single-family homes as rental properties. As of September 30, 2020, we owned 53,229 single-family properties in selected submarkets in 22 states.

Additional information about American Homes 4 Rent is available on our website at www.americanhomes4rent.com. 

Contact:
American Homes 4 Rent
Investor Relations
Phone: (855) 794-2447
Email: investors@ah4r.com

 

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SOURCE American Homes 4 Rent

FAQ

What is the tax treatment for American Homes 4 Rent (AMH) 2020 cash distributions?

For the tax year 2020, 54.88% is Ordinary Dividend Income, 1.14% Qualified Dividend Income, and 43.98% Capital Gain Distributions.

How much of AMH's 2020 distributions is classified as capital gains?

43.98% of American Homes 4 Rent's 2020 distributions are classified as Capital Gain Distributions.

What should shareholders of AMH do regarding their tax implications for 2020 distributions?

Shareholders are advised to consult with their tax advisors for personalized advice on the tax treatment of 2020 distributions.

When will American Homes 4 Rent file its 2020 tax return?

The tax return for the year ended December 31, 2020, has not yet been filed.