Reading Comprehension Quiz Question \#15 of 15 A REIT does NOT have to pay corporate income tax as long as \( 90 \% \) of its income is distributed to its shareholders and certain other conditions are me True False

True! Real Estate Investment Trusts (REITs) enjoy a special tax status if they adhere to specific regulations, such as distributing at least 90% of their taxable income to shareholders. This unique structure allows them to pass through most of their income without incurring corporate taxes, making them an attractive option for investors seeking income-generating assets. Additionally, it's worth noting that the concept of REITs originated in the United States in the early 1960s to give all investors, not just the wealthy, the opportunity to invest in large-scale, income-producing real estate. Over time, this model has expanded globally, allowing individuals worldwide to diversify their portfolios with real estate while enjoying attractive tax benefits.