Public Storage Announces Tax Treatment of 2020 Dividends

Rhea-AI Summary

Public Storage (NYSE:PSA) disclosed the tax treatment of its 2020 dividends, stating that 100% of the distributions for common and preferred stock are classified as ordinary income. There are no capital gain distributions or unrecaptured section 1250 gains for 2020. The ordinary income dividends do not qualify as “qualified dividend income,” but are categorized as “qualified REIT dividends” for non-corporate shareholders under the Tax Cuts and Jobs Act of 2017. This announcement is based on preliminary tax filing results and is subject to adjustment.

Positive

• Classified 100% of 2020 dividends as ordinary income for tax purposes
• Dividends classified as 'qualified REIT dividends' for non-corporate shareholders

Negative

• Ordinary income dividends do not qualify as 'qualified dividend income'

Public Storage (NYSE:PSA) announced today the tax treatment of the Company’s 2020 dividends. For the tax year ended December 31, 2020, 100% of the distributions for the PSA common stock and all the various series of preferred stock were classified as ordinary income. The Company did not declare a capital gain distribution, nor did it have any unrecaptured section 1250 gain for 2020.

The ordinary income dividends are not “qualified dividend income.”

For shareholders other than corporations the ordinary dividends are “qualified REIT dividends” under the qualified business income provisions enacted as part of the Tax Cuts and Jobs Act of 2017.

This release is based on the preliminary results of work on the Company’s tax filings and is subject to correction or adjustment when the filings are completed. The Company is releasing information at this time to aid those required to distribute Forms 1099 on the Company’s distributions. No material change in the classification is expected.

If you have questions, please consult your tax advisor for further guidance.

Company Information

Public Storage, a member of the S&P 500 and FT Global 500, is a REIT that primarily acquires, develops, owns and operates self-storage facilities. At September 30, 2020, we had: (i) interests in 2,504 self-storage facilities located in 38 states with approximately 171 million net rentable square feet in the United States, (ii) an approximate 35% common equity interest in Shurgard Self Storage SA (Euronext Brussels:SHUR) which owned 239 self-storage facilities located in seven Western European nations with approximately 13 million net rentable square feet operated under the “Shurgard” brand and (iii) an approximate 42% common equity interest in PS Business Parks, Inc. (NYSE:PSB) which owned and operated approximately 28 million rentable square feet of commercial space at September 30, 2020. Our headquarters are located in Glendale, California.

Additional information about Public Storage is available on the Internet. The Company’s website is PublicStorage.com.

View source version on businesswire.com: https://www.businesswire.com/news/home/20210119006176/en/

FAQ

What are the tax implications for the 2020 dividends from Public Storage (PSA)?

For the tax year 2020, 100% of the dividends are classified as ordinary income and do not qualify as 'qualified dividend income.'

How are the 2020 dividends from Public Storage treated for non-corporate shareholders?

The 2020 dividends are classified as 'qualified REIT dividends' under the Tax Cuts and Jobs Act of 2017 for non-corporate shareholders.

Did Public Storage declare any capital gain distributions for 2020?

No, Public Storage did not declare any capital gain distributions for the year 2020.

Is the classification of Public Storage dividends for 2020 final?

The classification is based on preliminary tax filings and may be subject to correction or adjustment.