Global Medical REIT provides update on impact of recent tax legislation
Global Medical REIT is providing the following information regarding the impact of the recently-enacted Tax Cuts and Jobs Action REIT dividends in response to investor inquiries. Key provisions of the legislation pertaining to REIT dividends include: Beginning in 2018, individual shareholders will receive a deduction equal to 20% of REIT dividends received. Under the law in effect for 2017 and prior years, the maximum effective federal income tax rate on ordinary REIT dividends was 39.6%. As under prior law, REIT dividends may, if an investor's income exceeds certain thresholds, be subject to the 3.8% Medicare tax. With respect to portions of REIT distributions that do not constitute dividends there has been no change under the TCJA. The above deduction is applicable to ordinary REIT dividends, as opposed to distributions of capital gain or qualified dividends which are already taxed at preferential maximum 20% rates. The deduction for ordinary REIT dividends under the TCJA is not subject to the wage/unadjusted tax basis limits that are applicable to other types of pass-through income.