Invitation Homes Announces Tax Treatment of 2023 Dividends
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Insights
The disclosure by Invitation Homes Inc. regarding the tax treatment of its 2023 dividends is a critical piece of information for stockholders. The breakdown of dividends into various tax categories, such as ordinary income and capital gains, is important for investors to understand their tax liability. The distinction between Sec. 1231 gains and other types of capital gains is significant, as it influences the tax rate applied to each portion of the dividend. Moreover, the company's adherence to Sec. 857(b)(9) in treating dividends paid in January 2024 as part of the 2023 tax year helps investors in tax planning. This is because it allows them to anticipate the tax implications of their investments in the current tax year rather than deferring it to the next.
From a financial perspective, the announcement by Invitation Homes Inc. provides transparency into the company's dividend distributions and their tax implications. Investors can use this information to assess the after-tax return on their investment in the company's common stock. The detailed breakdown of the dividend components also enables investors to evaluate the company's performance in terms of earnings and profit generation. The fact that the dividends are largely classified as taxable implies a reliable income stream for the company, which could be a positive indicator for the company's financial health and its ability to generate and distribute earnings to shareholders.
The tax treatment of dividends from a REIT like Invitation Homes Inc. is particularly relevant due to the unique tax structure of REITs. Unlike other corporations, REITs are required to distribute at least 90% of their taxable income to shareholders and in return, they are allowed to deduct these distributions from their corporate taxable income. The breakdown of the dividend into ordinary income and capital gains reflects the nature of income that the REIT has earned, such as rental income or profits from property sales. For investors, understanding the components of the REIT's dividends, including the portion eligible for the Sec. 199A deduction, is essential for evaluating the tax efficiency of their REIT investments.
Please note that federal tax laws affect taxpayers differently and the Company cannot advise its stockholders on how distributions should be reported on their federal income tax returns. Please also note that state and local taxation of real estate investment trust distributions varies and may not be the same as the federal rules. Stockholders must consult with their own tax advisors regarding their specific tax treatment of these dividends.
Invitation Homes Inc. Common Stock (1) CUSIP 46187W107 |
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Box 1a |
Box 2a |
Box 2b |
Box 2f |
Box 5 |
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Record Date |
Payable Date |
Cash Distribution(2) |
Taxable Dividend(2) |
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Total Ordinary Dividends |
Total Capital Gain Distr.(3) |
Unrecap. Sec. 1250 Gain(4) |
Sec. 897 Capital Gain(4) |
Sec. 199A Dividends(5) |
2/14/2023 |
2/28/2023 |
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5/10/2023 |
5/26/2023 |
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8/8/2023 |
8/25/2023 |
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11/7/2023 |
11/22/2023 |
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12/27/2023 |
1/19/2024 |
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- All dollar amounts reported above are per share and all section references are to the Internal Revenue Code of 1986, as amended, or the Treasury Regulations promulgated thereunder.
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Pursuant to Sec. 857(b)(9), cash dividends paid in January 2024 with a record date of December 2023 are treated as received by stockholders in 2023 to the extent of the Company’s 2023 earnings and profits. As a result, please note that of the
$0.28 $0.27 7190$0.00 2810 - Pursuant to Reg. Sec. 1.1061-6(c), which generally applies to direct and indirect holders of "applicable partnership interests," none of the total capital gain distributions reported above are considered "One Year Amounts" and "Three Year Amounts," since all capital gain distributions relate to Sec. 1231 gains.
- These amounts are a subset of, and included in, the total capital gain distribution in Box 2a.
- These amounts are a subset of, and included in, the total ordinary dividends in Box 1a.
About Invitation Homes:
Invitation Homes, an S&P 500 company, is the nation's premier single-family home leasing and management company, meeting changing lifestyle demands by providing access to high-quality, updated homes with valued features such as close proximity to jobs and access to good schools. The company's mission, "Together with you, we make a house a home," reflects its commitment to providing homes where individuals and families can thrive and high-touch service that continuously enhances residents' living experiences.
View source version on businesswire.com: https://www.businesswire.com/news/home/20240123621325/en/
Investor Relations Contact:
Scott McLaughlin
844.456.INVH (4684)
IR@InvitationHomes.com
Media Relations Contact:
Kristi DesJarlais
972.421.3587
Media@InvitationHomes.com
Source: Invitation Homes Inc.
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