Textainer Announces Change in U.S. Tax Treatment of 2021 Dividends
Textainer Group Holdings Limited (NYSE:TGH) announced a significant change in its tax reporting for dividends paid in 2021, now deeming them taxable income for U.S. federal income tax purposes instead of nontaxable returns of capital. This change affects all common and preferred dividends. The amended IRS Form 8937 can be accessed on the company's website. Additionally, dividends paid on March 15, 2022, are also expected to be treated as taxable income. Shareholders are advised to consult tax advisors regarding potential impacts on their 2021 taxes.
- None.
- Change in dividend tax treatment may create unexpected tax liabilities for shareholders.
HAMILTON, Bermuda, April 06, 2022 (GLOBE NEWSWIRE) -- Textainer Group Holdings Limited (NYSE:TGH) (“Textainer”) today announced a change in the reporting of both common and preferred dividends paid to its shareholders in 2021 for U.S. federal income tax purposes.
Textainer previously reported on IRS Form 8937 that all of its 2021 distributions were to be treated as a nontaxable return of capital to the extent of each shareholder’s relative income tax basis. With revised reporting, these distributions are now to be considered taxable income for U.S. federal income tax purposes.
Amended 2021 IRS Form 8937s are available on Textainer’s website, which can be accessed at https://investor.textainer.com/form8937.
The table below summarizes the tax treatment for dividends paid in 2021 on the Company’s Common Shares (NYSE:TGH):
| Originally Reported on Form 8937 | Reported on Amended Form 8937 | ||||||||||
| Record Date | Payment Date | Total Per Share Cash Distribution | Return of Capital Per Share | Taxable Dividend Per Share | Total Per Share Cash Distribution | Return of Capital Per Share | Taxable Dividend Per Share | ||||
| December 03, 2021 | December 15, 2021 | $ | 0.25 | $ | 0.25 | — | $ | 0.25 | — | $ | 0.25 |
Textainer also previously announced that for dividends paid on March 15, 2022 on the Company’s Common Shares (NYSE:TGH) the distribution may be treated as a nontaxable return of capital. Consistent with the revised reporting of 2021 distributions, the March 15, 2022 distribution should be considered taxable income for U.S. federal income tax purposes. Please note that the taxable dividend characterization provided is an estimate, and the final characterization of the distribution will not be determinable until year-end because the earnings and profits of TGH cannot be determined until year-end.
| The table below summarizes the tax treatment for dividends paid in 2021 on the Company’s Series A Preferred Shares (NYSE:TGH PRA): | |||||||||||
| Originally Reported on Form 8937 | Reported on Amended Form 8937 | ||||||||||
| Record Date | Payment Date | Total Per Depositary Share Cash Distribution | Return of Capital Per Depositary Share | Taxable Dividend Per Depositary Share | Total Per Depositary Share Cash Distribution | Return of Capital Per Depositary Share | Taxable Dividend Per Depositary Share | ||||
| May 31, 2021 | June 15, 2021 | $ | 0.3014 | $ | 0.3014 | — | $ | 0.3014 | — | $ | 0.3014 |
| August 31, 2021 | September 15, 2021 | $ | 0.4375 | $ | 0.4375 | — | $ | 0.4375 | — | $ | 0.4375 |
| December 03, 2021 | December 15, 2021 | $ | 0.4375 | $ | 0.4375 | — | $ | 0.4375 | — | $ | 0.4375 |
The table below summarizes the tax treatment for dividends paid in 2021 on the Company’s Series B Preferred Shares (NYSE:TGH PRB):
| Originally Reported on Form 8937 | Reported on Amended Form 8937 | ||||||||||
| Record Date | Payment Date | Total Per Depositary Share Cash Distribution | Return of Capital Per Depositary Share | Taxable Dividend Per Depositary Share | Total Per Depositary Share Cash Distribution | Return of Capital Per Depositary Share | Taxable Dividend Per Depositary Share | ||||
| December 03, 2021 | December 15, 2021 | $ | 0.4861112 | $ | 0.4861112 | — | $ | 0.4861112 | — | $ | 0.4861112 |
Shareholders should consult their tax advisors to determine how this change may affect their 2021 taxes.
About Textainer Group Holdings Limited
Textainer has operated since 1979 and is one of the world's largest lessors of intermodal containers with approximately 4.3 million TEU in our owned and managed fleet. We lease containers to approximately 200 customers, including all of the world's leading international shipping lines, and other lessees. Our fleet consists of standard dry freight, refrigerated intermodal containers, and dry freight specials, and we are one of the most reliable suppliers of new and used containers. Textainer operates via a network of 14 offices and approximately 400 independent depots worldwide. Textainer has a primary listing on the New York Stock Exchange (NYSE: TGH) and a secondary listing on the Johannesburg Stock Exchange (JSE: TXT).
Source: Textainer Group Holdings Limited
Contact Information
Investor Relations
+1 415-658-8333
ir@textainer.com
FAQ
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