Sean, thank you sooooo much. This was a wonderfully clear explanation for a novice 1099-DIV filer. I appreciate you walking through the form 8995 process. Big help! And as a side note, seeing that a percentage of section 199a dividends is deducted from your income definitely makes REITs an appealing investment.
Loved this video! I do my taxes at home and didn't include this last year. Another $2 in my pocket was worth the learning curve. It will save much more further down the road.
Thank you for explaining (in this video and your website article) how REIT dividends flow into the Section 199A Line 5 of the 1099-DIV and Line 6 of Form 8995. Every other article I've read just states that REIT dividends are taxed as Ordinary Income but fails to mention them being included in the Section 199A of the 1099-DIV or even how they get into your tax return. Knowing that makes a huge difference for me in my tax planning for 2023. I have a $3214 loss carry forward from a sale of a pipeline Publicly Traded Partnership (PTP) and have sworn never to buy another PTP because of the resulting tax complexity of SELLING the PTP; especially since TurboTax doesn't handle them cleanly. As you said the REIT Section 199A dividends will flow to Line 6 of Form 8995 and go against my loss carry forward from the PTP sale on Line 7 of Form 8995. So all I need to do is purchase a REIT mutual fund or ETF and the first $3214 in REIT Income dividends would be tax free. Do EFT's treat the REIT dividend the same as mutual funds? No deduction would result until I earn more than $3214 in Section 199A Dividends.
Thank you for watching and commenting. I appreciate it. Unfortunately, I'm not able to answer questions about specific individual tax situations in the comments.
There's a ton of confusion out there about the Section 199A deduction. There are various limits based on income. Those limits apply to the income generated by a "qualified trade or business." They do not apply to REIT dividends (Section 199A dividends) and publicly traded partnership income. I blogged about Section 199A dividends here: fitaxguy.com/what-are-section-199a-dividends/
If an amount on one's 1099-DIV is listed as a Section-199A, but this is from a non-R.E.I.T. source (e.g., is instead from a preferred share), is the amount to be handled the same way as if it were from a R.E.I.T. holding? Thank you very much.
Sean, thank you sooooo much. This was a wonderfully clear explanation for a novice 1099-DIV filer. I appreciate you walking through the form 8995 process. Big help!
And as a side note, seeing that a percentage of section 199a dividends is deducted from your income definitely makes REITs an appealing investment.
Loved this video! I do my taxes at home and didn't include this last year. Another $2 in my pocket was worth the learning curve. It will save much more further down the road.
Thank you for explaining (in this video and your website article) how REIT dividends flow into the Section 199A Line 5 of the 1099-DIV and Line 6 of Form 8995. Every other article I've read just states that REIT dividends are taxed as Ordinary Income but fails to mention them being included in the Section 199A of the 1099-DIV or even how they get into your tax return. Knowing that makes a huge difference for me in my tax planning for 2023. I have a $3214 loss carry forward from a sale of a pipeline Publicly Traded Partnership (PTP) and have sworn never to buy another PTP because of the resulting tax complexity of SELLING the PTP; especially since TurboTax doesn't handle them cleanly.
As you said the REIT Section 199A dividends will flow to Line 6 of Form 8995 and go against my loss carry forward from the PTP sale on Line 7 of Form 8995. So all I need to do is purchase a REIT mutual fund or ETF and the first $3214 in REIT Income dividends would be tax free. Do EFT's treat the REIT dividend the same as mutual funds? No deduction would result until I earn more than $3214 in Section 199A Dividends.
Thank you for watching and commenting. I appreciate it. Unfortunately, I'm not able to answer questions about specific individual tax situations in the comments.
The internet says this deduction is phased out above a $157,500 income limit, not adjusted for inflation.
There's a ton of confusion out there about the Section 199A deduction. There are various limits based on income. Those limits apply to the income generated by a "qualified trade or business." They do not apply to REIT dividends (Section 199A dividends) and publicly traded partnership income. I blogged about Section 199A dividends here: fitaxguy.com/what-are-section-199a-dividends/
Great info, thanks for the vid.
If an amount on one's 1099-DIV is listed as a Section-199A, but this is from a non-R.E.I.T. source (e.g., is instead from a preferred share), is the amount to be handled the same way as if it were from a R.E.I.T. holding?
Thank you very much.
I have a K-1 that shows Section 199A dividends in Box 20Z. Are we still allowed to take a 20% deduction on the amounts reported here?