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Is the Section 199A Dividend Deduction Right for You? Pros and Cons Explained

SmartAsset
Summary
Nutrition label

83% Informative

Dividends from domestic real estate investment trusts (REITs) qualify for a special 20% tax deduction.

Income limits don't apply to Section 199A income from REITS.

The tax deduction for dividends is generally 20% of the amount reported in Box 5 of 1099 -DIV.

The deduction does not reduce your adjusted gross income or marginal tax bracket.

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VR Score

84

Informative language

83

Neutral language

46

Article tone

informal

Language

English

Language complexity

42

Offensive language

not offensive

Hate speech

not hateful

Attention-grabbing headline

not detected

Known propaganda techniques

not detected

Time-value

long-living

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