Procrastination is a silent and slow killer of savings. Everyone puts things off, of course, waiting until the last minute and then scurrying to finish a longstanding to-do list. Taken to extremes, this course pulverizes your long-term financial plans.
Dividends and interest are the two major types of income investors can receive. The distinction between dividends and interest is determined by what type or classification of investment pays the income. Dividends and interest also have different tax consequences for both the receiving parties and the paying entities.
The majority of REIT dividends are taxed as ordinary income up to the maximum rate of 39.6 percent, plus a separate 3.8 percent surtax on investment income. However, REIT dividends will qualify for a lower tax rate in the following instances: When the individual taxpayer is subject to a lower scheduled income tax rate;