Sotherly Hotels Updates Shareholders on Tax Considerations

Author: Olivia Taylor Updated: 02-18-2025 02:32 PM

Sotherly Hotels Inc. Dividend Tax Treatment Explained

Sotherly Hotels Inc. (NASDAQ: SOHO) has recently announced the income tax classification for its 2024 distributions on Series B, Series C, and Series D preferred shares. This important piece of information helps shareholders understand how their dividends will be reported for tax purposes.

Distribution Overview

For the financial year, Sotherly Hotels has indicated that no portion of the dividends will qualify as foreign taxes or qualified dividend income. This aspect is crucial for shareholders as it determines the tax implications of their investments.

Understanding the Tax Classifications

The estimated income tax classifications include categories like ordinary income and return of capital, reflecting how different distributions affect shareholders’ taxes. Record holders of common shares will receive a Form 1099-DIV from Equiniti Trust Company, the agency managing the company's dividend distributions. This form will detail the exact amounts paid for the 2024 tax year.

Importance of Accurate Tax Reporting

Investors are encouraged to keep this documentation for their records to assist with their tax preparations. Understanding these classifications can significantly impact tax liabilities and overall financial planning for shareholders of Sotherly Hotels.

Insights on Sotherly Hotels Inc.

Founded in 2004, Sotherly Hotels Inc. operates as a self-managed and self-administered lodging Real Estate Investment Trust (REIT). The primary focus is on the acquisition, renovation, and repositioning of upscale hotels predominantly located in the Southern United States. The company's portfolio consists of twelve hotel properties with a total of 2,786 rooms, along with investments in two condominium hotels and their respective rental programs.

Brand Partnerships and Market Positioning

Sotherly Hotels has established relationships with noteworthy brands such as Hilton, Marriott, and Hyatt, alongside a selection of independent hotels. This diverse portfolio allows the company to cater to various guest preferences while enhancing their market presence.

Future Outlook for Shareholders

Looking ahead, shareholders of Sotherly Hotels can expect consistent updates regarding tax treatments and financial evaluations. The company remains committed to transparency and providing shareholders with the necessary information to make informed decisions regarding their investments.

Consultation Encouraged

As with all tax-related matters, Sotherly Hotels advises shareholders to consult with tax professionals or financial advisors. Each investor’s situation is unique, and professional guidance can help clarify personal tax obligations related to their investments in Sotherly Hotels.

Frequently Asked Questions

1. What is the main focus of Sotherly Hotels Inc.?

Sotherly Hotels concentrates on managing and repositioning upscale hotels primarily in the Southern U.S.

2. How does Sotherly classify its dividend distributions for the year?

The distributions are classified as ordinary income and returns of capital, which impact shareholder tax filings.

3. When will shareholders receive the IRS Form 1099-DIV?

Shareholders can expect to receive the 1099-DIV from Equiniti Trust Company detailing their dividends for the year.

4. Does Sotherly Hotels provide tax advice?

No, Sotherly Hotels recommends consulting tax professionals for personalized advice regarding shareholder taxes.

5. What brands does Sotherly Hotels partner with?

The company operates hotels under major brands like Hilton, Marriott, and Hyatt, in addition to independents.

About The Author

Olivia Taylor here, a 26-year-old writer and financial advisor. After earning a degree in finance, I worked in the sector for years. I've always loved numbers and had a talent for simplifying difficult financial ideas so that anyone could understand. I wrote my first book because of this passion; it helps readers take charge of their financial futures by fusing real-life stories with useful financial advice.

Whether they are just beginning their careers, preparing for significant life events, or seeking to invest wisely, my goal with my writing is to enable people to make educated financial decisions. The foundation of my work is the conviction that security and freedom of the individual are largely determined by financial literacy. To further financial education, I run workshops and frequently write for financial blogs in addition to my books.

I like to travel, experience other cultures, and find inspiration in daily life when I'm not writing or examining market trends. My passion is utilizing sound financial practices to help people reach their financial objectives and lead the best lives possible.

Contact Olivia Taylor privately here. Or send an email with ATTN: Olivia Taylor as the subject to contact@investorshangout.com.

About Investors Hangout

Investors Hangout is a leading online stock forum for financial discussion and learning, offering a wide range of free tools and resources. It draws in traders of all levels, who exchange market knowledge, investigate trading tactics, and keep an eye on industry developments in real time. Featuring financial articles, stock message boards, quotes, charts, company profiles, and live news updates. Through cooperative learning and a wealth of informational resources, it helps users from novices creating their first portfolios to experts honing their techniques. Join Investors Hangout today: https://investorshangout.com/

The content of this article is based on factual, publicly available information and does not represent legal, financial, or investment advice. Investors Hangout does not offer financial advice, and the author is not a licensed financial advisor. Consult a qualified advisor before making any financial or investment decisions based on this article. This article should not be considered advice to purchase, sell, or hold any securities or other investments. If any of the material provided here is inaccurate, please contact us for corrections.