CareTrust REIT, Inc. Announces Tax Treatment of 2021 Dividends

Rhea-AI Summary

CareTrust REIT (NASDAQ:CTRE) announced the tax status of its 2021 dividends, reporting a total cash distribution of $1.3100 per share. This includes $0.2650 declared for the quarter ending December 31, 2021, payable on January 15, 2022. Due to exceeding earnings and profits for 2021, this amount will appear on the 2022 Form 1099. Shareholders will receive IRS Form 1099-DIV detailing their dividends and tax classifications. The company advises consulting tax advisors for specific reporting guidance.

Positive

• Total cash distribution of $1.3100 per share for 2021, indicating strong shareholder returns.
• Transparent communication regarding tax implications, aiding shareholder understanding.

Negative

• Dividends exceeding earnings and profits may raise questions about sustainability.
• A portion of the dividends will be reported for 2022, complicating tax reporting for shareholders.

SAN CLEMENTE, Calif., Jan. 24, 2022 (GLOBE NEWSWIRE) -- CareTrust REIT, Inc. (NASDAQ:CTRE) reported today the tax status of its 2021 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
12/31/20	01/15/21	$	0.2500	$	0.2500			90.0562	%	0.0000	%	0.0000	%	0.0000	%	9.9438	%	90.0562	%
03/31/21	04/15/21	$	0.2650	$	0.2650			90.0562	%	0.0000	%	0.0000	%	0.0000	%	9.9438	%	90.0562	%
06/30/21	07/15/21	$	0.2650	$	0.2650			90.0562	%	0.0000	%	0.0000	%	0.0000	%	9.9438	%	90.0562	%
09/30/21	10/15/21	$	0.2650	$	0.2650			90.0562	%	0.0000	%	0.0000	%	0.0000	%	9.9438	%	90.0562	%
12/31/21	01/15/22	$	0.2650	$	-	(1	)	0.0000	%	0.0000	%	0.0000	%	0.0000	%	0.0000	%	0.0000	%
Total		$	1.3100	$	1.0450			90.0562	%	0.0000	%	0.0000	%	0.0000	%	9.9438	%	90.0562	%
(1) As the Company's aggregate 2021 cash distributions exceeded its 2021 earnings and profits, the January 2022 cash distribution declared in the fourth quarter of 2021 will be treated as a 2022 distribution for federal income tax purposes and not included on the 2021 Form 1099. If you were a stockholder of record as of December 31, 2021, $0.00 is reported on your 2021 Form 1099 and $0.265 will be reported on your 2022 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 2021 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 2021, 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, 2021, 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™

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 dividend amount for CareTrust REIT for 2021?

CareTrust REIT announced a total cash distribution of $1.3100 per share for 2021.

When will the dividend for the quarter ending December 31, 2021, be paid?

The dividend for the quarter ending December 31, 2021, will be paid on January 15, 2022.

What should shareholders do regarding tax reporting for the 2021 dividends?

Shareholders are advised to consult their tax advisors for guidance on reporting the dividends for tax purposes.

Will the 2021 dividends be reported on the 2021 Form 1099?

Due to certain distributions exceeding earnings, $0.265 will be reported on the 2022 Form 1099.

How are CareTrust REIT dividends classified for tax purposes?

Dividends are classified into categories such as ordinary dividends, qualified dividends, and capital gains.