Understanding the Tax Treatment for FCPT 2024 Distributions

Understanding the Tax Treatment for FCPT 2024 Distributions

Four Corners Property Trust, Inc. (NYSE: FCPT), a well-respected real estate investment trust, has made a significant announcement regarding the tax treatment of its common stock distributions for the year 2024. As many investors are keen on understanding how these distributions will be characterized for tax purposes, it is essential to consider the details and implications of this announcement.

Overview of FCPT and Its Operations

FCPT specializes in acquiring and managing high-quality, net-leased restaurant and retail properties. The company has built a strong reputation for its strategic investments in the real estate sector, especially in establishing solid partnerships with leading brands in the restaurant industry. This focused approach has allowed FCPT to nurture a diversified portfolio while ensuring steady growth in revenue and shareholder value.

Tax Characterization of Distributions

For the financial year 2024, FCPT has provided clear information regarding the tax characterization of its distributions. Investors can expect a range of tax classifications that will impact how these distributions are reported on their tax returns.

Distribution Details

The total distributions will total $1.3800 per share for 2024. Of this amount, $1.2696 is expected to be classified as ordinary taxable dividends reported in Box 1a of IRS Form 1099-DIV. In addition, shareholders will also see a return of capital amounting to $0.1104 in Box 3, which will alter the basis of their stock holdings.

Tax Implications for Shareholders

It is crucial to understand that different classifications of distributions might have varying impacts on your overall tax liabilities. Ordinary taxable dividends typically are subject to regular income taxes, while return of capital can reduce the cost basis of your investment, thus impacting future capital gains when the stock is sold.

Record and Payment Dates for 2024 Distributions

FCPT has shared its record and payment dates for the distributions in 2024. Below are the key dates:

Record Date: 12/29/2023 - Payment Date: 1/12/2024
Total Distribution ($ per share): $0.3450
Ordinary Taxable Dividend ($ per share): $0.3174
Return of Capital ($ per share): $0.0276
Qualified Taxable Dividend ($ per share): $0.3174

Another essential payment is scheduled for 3/28/2024 with a payment date of 4/15/2024, mirroring the same distribution values as stated above.

Information for Shareholders

For those who held FCPT’s common stock during 2024, be on the lookout for IRS Form 1099-DIV, which will be issued by Broadridge Corporate Issuer Solutions, FCPT’s transfer agent. Shareholders who held stock in "street name" might receive different forms from their financial institutions, which could present gross distributions without detailed breakdowns.

To accurately complete federal tax returns, it is advisable for shareholders to utilize the information provided in this announcement. Proper understanding of the tax treatment for FCPT distributions is crucial to avoid complications during tax season.

Professional Guidance Recommended

Given the complexities surrounding tax laws and individual circumstances, FCPT encourages all shareholders to seek advice from qualified tax professionals to gain clarity on how to report the distributions. State and local tax laws can also differ, adding another layer of complexity. Every investor's situation is unique, and tailored guidance can ensure that you are compliant while maximizing benefits.

About FCPT

FCPT is a forward-thinking real estate investment trust that invests primarily in restaurant and retail properties. Based in Mill Valley, CA, the company focuses on expanding its portfolio through selective acquisitions, ensuring sustainable growth and profitability. Those interested in learning more can visit the FCPT website for additional details regarding its operations.

Frequently Asked Questions

What is the primary focus of Four Corners Property Trust?

FCPT focuses on the ownership and leasing of high-quality restaurant and retail properties.

How are distributions characterized for tax purposes?

Distributions can be categorized as ordinary taxable dividends, qualified dividends, or returns of capital.

When can shareholders expect their 2024 distributions?

The distributions begin on January 12, 2024, with subsequent payments throughout the year.

What should shareholders do if they held shares in street name?

Shareholders should consult their financial institutions to obtain the necessary IRS forms for accurate reporting.

Why is professional tax advice recommended for FCPT shareholders?

Tax laws can be complex, and individual circumstances vary, making tailored advice essential for accurate reporting.

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