Understanding Tax Treatment for Armada Hoffler's Dividends
Tax Treatment of Armada Hoffler Properties' 2024 Dividends
Armada Hoffler Properties, Inc. (NYSE: AHH), a reputable real estate investment trust (REIT), has provided important details regarding the income tax treatment of its dividend distributions for the year 2024. This information is essential for shareholders who need to understand the implications of their investments.
Final Income Allocations
According to the announcement, the tax information will be reflected in the Form 1099-DIV, which stockholders will receive. It's crucial that investors consult their personal tax advisors to grasp how this information applies to their individual tax situations. Since 2018, ordinary taxable income from both common and preferred stock shares aligns with the 199A dividend established by the Tax Cuts and Jobs Act of 2017.
Dividends from Common Stock
For investors holding common stocks, the dividends classified under various boxes on the IRS Form 1099-DIV include:
Total Ordinary Dividends
For common stock, the total ordinary dividends amount to 36.62%. This figure is vital for calculating taxable income related to dividends received.
Total Capital Gain Distribution
In terms of capital gains, shareholders will note that 36.80% of their gains fall under the capital gain distribution. This can significantly impact their tax liabilities.
Unrecaptured Section 1250 Gain
A portion of the dividends, approximately 25.45%, is classified as unrecaptured Section 1250 gain, which pertains to certain types of real estate that may have depreciation deductions.
Section 897 Dividends
Furthermore, 2.89% of the dividends are classified under Section 897 as ordinary dividends, with 36.80% reflecting Section 897 capital gains.
Non-Dividend Distributions
The dividends also encompass 26.58% in non-dividend distributions, reflecting the returns of capital.
Tax Structure for Preferred Stock
For shareholders of Preferred Series A stock, the tax allocations similarly offer crucial insights:
Total Ordinary Dividends for Preferred
Preferred stockholders can expect 49.88% as total ordinary dividends. This representation is critical for a proper understanding of their tax circumstances.
Capital Gains from Preferred Stock
On the other hand, the total capital gain distribution for preferred stock is an impressive 50.12%, further demonstrating the profitability of ownership.
Understanding the Taxable Amounts
Each box on the Form 1099-DIV represents specific income types under the Internal Revenue Code (IRC), which stockholders need to be aware of to accurately report their income:
- Box 1a showcases total ordinary dividends, which carry straightforward implications for tax reporting.
- Box 2a involves capital gains, providing important data for long-term investment strategies.
- Box 3 refers to non-dividend distributions, impacting the overall taxable income.
About Armada Hoffler Properties, Inc.
Established in 1979 by Daniel A. Hoffler, Armada Hoffler Properties, Inc. focuses on the development and management of high-quality properties. As a self-managed REIT, the company has built a remarkable portfolio primarily in the Mid-Atlantic and Southeastern U.S. Over four decades, it has developed institutional-grade office, retail, and multifamily buildings and has partnered with third-party clients to provide construction services.
More About the Company
Armada Hoffler's innovative approach towards property management and development exemplifies its commitment to excellence and growth within the real estate sector. For potential investors and current shareholders, understanding the tax implications of their dividends is crucial to effective financial planning.
Contact Information
For any inquiries regarding the dividends or other investor relations aspects, shareholders can reach out to Chelsea Forrest, Vice President of Investor Relations, at (757) 366-4000 or via email at CForrest@ArmadaHoffler.com.
Frequently Asked Questions
What are the key tax implications for Armada Hoffler's 2024 dividends?
Investors need to consider the ordinary dividends, capital gains, and other classifications reported on Form 1099-DIV.
How is the tax treatment for common stock dividends structured?
Common stock dividends contain ordinary, capital gain, and return of capital classifications that influence tax responsibilities.
What should preferred stockholders note about their dividends?
Preferred stock dividends generally have higher percentages in both ordinary and capital gain distributions compared to common stock.
What is the importance of consulting a tax advisor?
Personal tax situations vary, and a tax advisor can provide tailored advice on the implications of dividend classifications.
Where can I find more information about Armada Hoffler Properties?
More details can be accessed on Armada Hoffler's official website or by contacting investor relations directly.
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