CareTrust REIT, Inc. Announces Tax Treatment of 2020 Dividends

Rhea-AI Summary

CareTrust REIT (NASDAQ:CTRE) disclosed the tax status of its 2020 dividends, reporting a total of $1.00 distributed to shareholders, with $0.75 qualifying as ordinary dividends. For tax purposes, the January 2021 distribution is classified as a 2021 distribution due to earnings exceeding cash distributions in 2020. Record shareholders will see $0.25 reported in 2021, not 2020. Tax implications vary by state, and the company advises consulting tax advisors regarding reporting these dividends.

Positive

• Total dividend distribution of $1.00 per share.
• $0.75 of the dividends qualify as ordinary dividends.

Negative

• January 2021 distribution treated as 2021 income, affecting 2020 tax reporting.

SAN CLEMENTE, Calif., Jan. 26, 2021 (GLOBE NEWSWIRE) -- CareTrust REIT, Inc. (NASDAQ:CTRE) reported today the tax status of its 2020 dividends paid to shareholders. Details on the classifications of the dividends are included in the table below:

DISTRIBUTIONS ON CARETRUST COMMON STOCK
								Box 1a		Box 1b		Box 2a		Box 2b		Box 3		Box 5
														Unrecap.
										Qualified				Section
				Taxable						Dividend				1250 Gain				Section
Record	Payment	Distribution		Distribution				Ordinary		(Included in		Capital		(Included in		Non-Dividend		199A
Date	Date	Per Share		Per Share				Dividend		Box 1a)		Gain Distr.		Box 2a)		Distributions		Dividend
03/31/20	04/15/20	$	0.2500	$	0.2500			85.8035	%	0.0000	%	0.0000	%	0.0000	%	14.1965	%	85.8035	%
06/30/20	07/15/20	$	0.2500	$	0.2500			85.8035	%	0.0000	%	0.0000	%	0.0000	%	14.1965	%	85.8035	%
09/30/20	10/15/20	$	0.2500	$	0.2500			85.8035	%	0.0000	%	0.0000	%	0.0000	%	14.1965	%	85.8035	%
12/31/20	01/15/21	$	0.2500	$	-	(1)		0.0000	%	0.0000	%	0.0000	%	0.0000	%	0.0000	%	0.0000	%
Total		$	1.0000	$	0.7500			85.8035	%	0.0000	%	0.0000	%	0.0000	%	14.1965	%	85.8035	%
(1) As the Company's aggregate 2020 cash distributions exceeded its 2020 earnings and profits, the January 2021 cash distribution declared in the fourth quarter of 2020 will be treated as a 2021 distribution for federal income tax purposes and not included on the 2020 Form 1099. If you were a stockholder of record as of December 31, 2020, $0.00 is reported on your 2020 Form 1099 and $0.25 will be reported on your 2021 Form 1099.

Shareholders of record of the Company’s common stock will receive an Internal Revenue Service Form 1099-DIV from Broadridge Corporate Issuer Solutions, the Company’s 2020 dividend paying agent.  The form will report the dividends paid and the amounts designated as total ordinary dividends, qualified dividends, total capital gains, unrecaptured section 1250 gains, non-dividend distributions and dividends that may be eligible for the 20% qualified business income deduction under section 199A. If shares were held in “street name” during 2020, the IRS form will be provided by a bank, brokerage firm, or nominee. Because the Company’s tax return has not yet been filed for the year ended December 31, 2020, the dividend income tax allocations presented herein have been calculated using the best available information to date.

The tax treatment of these dividends by state and local authorities varies and may not be the same as the IRS’s treatment. Because federal and state tax laws affect individuals differently, the Company cannot advise shareholders on how dividends should be reported on their tax returns. The Company encourages shareholders to consult with their own tax advisors with respect to the federal, state and local income tax consequences of these dividends.

About CareTrust^TM

CareTrust REIT, Inc. is a self-administered, publicly-traded real estate investment trust engaged in the ownership, acquisition, development and leasing of skilled nursing, seniors housing and other healthcare-related properties. With a nationwide portfolio of long-term net-leased properties, and a growing portfolio of quality operators leasing them, CareTrust REIT is pursuing both external and organic growth opportunities across the United States. More information about CareTrust REIT is available at www.caretrustreit.com.

CONTACT:
CareTrust REIT, Inc., (949) 542-3130, ir@caretrustreit.com

 

FAQ

What is the total dividend paid by CareTrust REIT in 2020?

CareTrust REIT paid a total dividend of $1.00 per share in 2020.

How much of the 2020 dividends are considered ordinary dividends?

Out of the total, $0.75 per share is classified as ordinary dividends.

When will the January 2021 distribution be reported for tax purposes?

The January 2021 distribution will be reported as a 2021 distribution, not included on the 2020 Form 1099.

What should shareholders consider regarding the tax implications of these dividends?

Shareholders are encouraged to consult their tax advisors due to varying state and local tax laws.