Kevin McElroy

A Tax Free Commodity Investment

Whether you paid your taxes early, or you’re still tearing your hair out looking for that one last receipt, there’s something aggravating about April 15th.

To take your mind off things, I’ve dug up some information on a special kind of tax-free investment: real estate investment trusts, or REITs.

REITs are special companies that pay ZERO corporate taxes as long as they pay out over 90% of their profits to shareholders in the form of dividends. Obviously, you have to pay tax on the dividends – but as a shareholder, that’s the only tax you’ll pay. Non-REIT shareholders get dinged twice: once as an owner (corporate tax) and again as a shareholder (capital gains and dividend taxes).

Okay, I know what you’re thinking: what does a REIT have to do with commodities?

[ More ยป ]