Broadmark Realty Capital Announces 2020 Tax Treatment of Dividends

Rhea-AI Summary

Broadmark Realty Capital Inc. (NYSE: BRMK) announced the tax treatment for its 2020 cash dividends. A total dividend of $0.78 per share was paid throughout the year, with monthly payments of $0.08 in January, February, and March, followed by $0.06 from April to December. All dividends are categorized as ordinary dividends, potentially qualifying for a 20% deduction under IRC Section 199A. Stockholders should consult their tax advisors regarding its implications. The dividend payments were distributed on set dates from February 2020 to January 2021.

Positive

• Total dividend of $0.78 per share for 2020 enhances shareholder income.
• Dividends may qualify for a 20% tax deduction for eligible stockholders.

Negative

• No qualified dividends reported, limiting tax benefits for some shareholders.

Broadmark Realty Capital Inc. (NYSE: BRMK) (the “Company”), an internally managed real estate secured finance company, today announced the tax treatment of its 2020 cash dividends on the Company’s common stock, as described below. Stockholders are encouraged to consult with their personal tax advisors as to their specific tax treatment of the Company’s dividends.

Common Stock (CUSIP #11135B100)
		Record Date		Pay Date(1)		Form		Total Dividend Per Share			Ordinary Dividend Per Share(2)			Qualified Dividend Per Share			Capital Gain Dividend Per Share
Jan-20		1/31/2020		2/14/2020		Cash		$	0.08		$	0.08			-			-
Feb-20		2/28/2020		3/13/2020		Cash		$	0.08		$	0.08			-			-
Mar-20		3/31/2020		4/15/2020		Cash		$	0.08		$	0.08			-			-
Apr-20		4/30/2020		5/15/2020		Cash		$	0.06		$	0.06			-			-
May-20		5/29/2020		6/15/2020		Cash		$	0.06		$	0.06			-			-
Jun-20		6/30/2020		7/15/2020		Cash		$	0.06		$	0.06			-			-
Jul-20		7/31/2020		8/14/2020		Cash		$	0.06		$	0.06			-			-
Aug-20		8/31/2020		9/15/2020		Cash		$	0.06		$	0.06			-			-
Sep-20		9/30/2020		10/15/2020		Cash		$	0.06		$	0.06			-			-
Oct-20		10/30/2020		11/13/2020		Cash		$	0.06		$	0.06			-			-
Nov-20		11/30/2020		12/15/2020		Cash		$	0.06		$	0.06			-			-
Dec-20		12/31/2020		1/15/2021		Cash		$	0.06		$	0.06			-			-
						Totals		$	0.78		$	0.78		$	-		$	-

(1) Pursuant to IRC Section 857(b)(9), for federal tax purposes, the Company’s cash dividend made on January 15, 2021 with a record date of December 31, 2020 is treated as received by stockholders on December 31, 2020 and included on the 2020 Form 1099-DIV.

(2) Ordinary Dividends may be eligible for the 20% deduction applicable to “qualified REIT dividends” pursuant to IRC Section 199A(b)(1)(B). Please consult your personal tax advisor.

Forward Looking Statements

Certain statements made herein are not historical facts but are forward-looking statements for purposes of the safe harbor provisions under The Private Securities Litigation Reform Act of 1995. Forward-looking statements generally are accompanied by words such as “may”, “should”, “would”, “plan”, “intend”, “anticipate”, “believe”, “estimate”, “predict”, “potential”, “seem”, “seek”, “continue”, “future”, “will”, “expect”, “outlook” or other similar words, phrases or expressions. These statements are based on the current expectations and are not predictions of actual performance. In addition, actual results are subject to other risks and uncertainties that relate more broadly to the Company’s overall business, including those more fully described in the Company’s filings with the Securities and Exchange Commission. Forward-looking statements are not guarantees of performance, and speak only as of the date made, and the Company undertakes no obligation to update or revise any forward-looking statements except as required by law.

About Broadmark Realty Capital

Broadmark Realty Capital Inc. (NYSE: BRMK) is an internally managed commercial real estate finance company that offers short-term, first deed of trust loans secured by real estate to fund the acquisition, renovation, rehabilitation or development of residential or commercial properties. Broadmark Realty Capital manages and services its loan portfolio across a variety of market conditions and economic cycles.

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FAQ

What is the total dividend paid by BRMK in 2020?

Broadmark Realty Capital paid a total dividend of $0.78 per share in 2020.

When were the dividends paid by BRMK in 2020?

Dividends were paid monthly from February 2020 to January 2021.

Are BRMK's dividends qualified for tax deductions?

The dividends are categorized as ordinary and may qualify for a 20% deduction under specific IRS regulations.

What should shareholders know about BRMK's dividend tax treatment?

Shareholders should consult their tax advisors for personalized tax treatment of the dividends.