Understanding Tax Implications for Farmland Partners' 2024 Dividends

Author: Addison Perry Updated: 01-31-2025 04:45 PM

Farmland Partners' 2024 Dividend Tax Treatment Overview

Farmland Partners Inc. (NYSE: FPI) has officially announced the tax treatment for its common stock distributions in 2024. Investors and shareholders seeking clarity on the implications of these distributions will find the summarized details vital for their financial planning.

Details of Dividend Declaration

The company declared a special dividend amounting to $0.21 per share on December 12, 2023, which is scheduled to be paid around January 12, 2024. This particular dividend is noteworthy as it represents a split-year distribution. For federal income tax purposes, a portion of this distribution, specifically $0.0051474 per share, is categorized as a distribution made in the 2024 tax year.

Additionally, Farmland Partners will issue another special dividend of $1.15 per share, which is set to be declared on December 13, 2024. This distribution will be applicable for shareholders of record as of December 18, 2024, and for tax treatment, it is considered a distribution made in 2024.

Specifications on Taxable Amounts

According to Treas. Reg. § 1.1061-4(b)(7)(i), the capital gains reflected in box 2(a) come from Section 1231 and do not fall under the category of “applicable partnership interest” disclosures. In the taxable year 2024, there was no indication of “Box 3 Non-dividend Distribution” on form 1099-DIV. Hence, it negated the obligation to file Form 8937.

FAQ: Distribution Information

Stockholders can refer to the Nareit REIT 1099-DIV Spreadsheet, which is accessible for download under the “2024 Dividend Information” section on the official company website.

Getting Professional Advice

As a best practice, stockholders are strongly encouraged to consult with their tax advisors to better understand the specific tax treatment associated with the distributions received from Farmland Partners Inc. Such consultations can provide personalized insights based on individual tax circumstances, ensuring informed decisions regarding these dividends.

About Farmland Partners Inc.

Farmland Partners Inc. is an internally managed real estate investment trust (REIT) that specializes in acquiring and managing high-quality farmland across North America. With a diverse portfolio, the company owns and manages approximately 141,800 acres spread across various states. Additionally, it provides loans to farmers secured by real estate interests. Farmland Partners is committed to maximizing shareholder value while providing strong returns through its investment strategies.

Frequently Asked Questions

What is the significance of the special dividends announced?

The special dividends designated by Farmland Partners reflect the company's commitment to returning value to its shareholders while adhering to tax regulations.

How does the split-year distribution affect my taxes?

A part of the split-year distribution is considered taxable in the following year, giving shareholders time to plan their tax responsibilities accordingly.

What resources are available for more information on tax treatment?

Shareholders can access the Nareit REIT 1099-DIV Spreadsheet on the company's website, providing detailed insights relevant to tax treatment.

Why is consulting a tax advisor suggested?

Consulting a tax advisor ensures that shareholders receive guidance tailored to their unique financial situations regarding dividend tax implications.

What types of distributions are considered in tax reporting?

Dividends, capital gains, and return of capital distributions are the primary components impacting tax reporting for shareholders.

About The Author

Hello, I'm 30-year-old financial writer and expert Addison Perry, and I love to simplify the intricacies of the financial industry. I've committed myself over the years to deciphering the subtleties of investing techniques and economic trends and converting them into doable guidance that anybody can use. My goal with writings and books is to make money interesting and approachable so that readers may take charge of their financial futures.

My enthusiasm to empowerment and education has propelled me through my career in finance. I write because I think that everyone should be able to make educated financial decisions, and I try to provide that. Regardless of experience level with investing, my work is intended to provide insightful analysis and practical advice to enable you to thrive in the always changing financial environment. I appreciate you traveling with me toward success and financial literacy.

Contact Addison Perry privately here. Or send an email with ATTN: Addison Perry 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.