Tax Implications of 2024 Distributions for UMH Properties

Understanding the Tax Treatment for 2024 Distributions

UMH Properties, Inc. (NYSE:UMH) has shared valuable insights regarding the tax treatment of its distributions for the year 2024. This information is essential for stockholders of the company, providing clarity on how these cash distributions will impact individual tax situations.

Details of the Cash Distributions

A breakdown of distributions offered to UMH Properties' shareholders includes both common and preferred shares for the calendar year. Stockholders will find essential information about the components of these distributions, such as non-qualifying ordinary income, long-term capital gains, and return of capital. Understanding these elements can help shareholders effectively manage their tax obligations.

Common Shares Distribution

For holders of common stock, the income distributions paid during the year are summarized as follows:

The distributions per share detail relevant monetary amounts which denote how shareholders can expect their investments to yield returns. Each payment date outlines how much stockholders will receive along with the classification of those payments as either capital gains or return of capital. For instance, certain payments may be categorized as non-qualifying income, while others represent capital gains that have specific tax implications.

Preferred Shares Distribution

Similarly, preferred share distributions provide specific amounts per share, with corresponding categories indicating the types of income received. For investors holding UMH Properties' cumulative redeemable preferred shares, shareowners can expect annual distributions that likewise fall into categories affecting their tax considerations.

Reinvestment Plan Discounts

Investors may also benefit from the dividend reinvestment plan, wherein shareholders have the opportunity to reinvest their dividends at discounted rates. Notably, these discounts are calculated based on the fair market values on specific discount dates. This can enhance shareholder value and foster further investment into UMH properties.

Consulting Tax Advisors

Shareholders are strongly encouraged to consult with their tax advisors to obtain advice tailored to their specific financial circumstances and the nature of their investments. Staying proactive about tax planning can lead to more informed financial decisions and better overall management of investment portfolios.

About UMH Properties, Inc.

Founded in 1968, UMH Properties, Inc. has evolved into a prominent real estate investment trust (REIT), specializing in the operation and ownership of manufactured home communities. The company currently manages 139 communities with around 26,200 developed homesites, inclusive of both rental homes and self-storage units. The geographical footprint extends to several states, ensuring a diverse range of assets within their portfolio.

Frequently Asked Questions

What is the purpose of the tax treatment announcement?

The announcement aims to inform stockholders about how their distributions for 2024 will be classified for tax purposes, helping them understand their tax liabilities.

How can I find out my specific tax liabilities from these distributions?

It is advisable to consult with a tax advisor who can provide personalized insights based on your financial situation and the distributions you received.

What types of shares does UMH Properties distribute?

UMH Properties offers both common and preferred shares, with each type having distinct distribution characteristics that impact tax outcomes.

Are there benefits to the dividend reinvestment plan?

Yes, shareholders can reinvest their dividends at discounts, which can enhance their overall investment value and contribute to long-term wealth accumulation.

Where can I learn more about UMH Properties, Inc.?

Further information can be sought through financial news outlets, the company's website, or by contacting their investor relations department.

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