Question

QUESTION 4 C corporations like Apple, Starbucks, and Coca Cola, pay taxes at the corporate level. Because dividends issued by C corps are taxed at the personal level, an investor in a C corporation is hit with double taxation. REITs are pass- through entities. This means that an investor in a REIT avoids double taxation? True False

Answer 1

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corred- Answer & Teue pour nic Coleporation business profit wee usually taxed at corporate as well as personal level. The & corp most pay at corporate level income tax before distribution of profit to shareholden After .. distribution to shareholders as dividend again taxed at individual rate i s Wherece In REIT o Real Betate invest menti teleust they - de tribute 90% of taxable income es dividend to share sholdere! Investors are teixed at individual level for oudinary potion of income from dividend & REIT do not pay tax at corporate level, co there i no problem of double taxation