2. Steadfast Companies began operations in
1994 and since that time has managed
more than $4 billion in real estate. Under
the direction of Chairman Rod Emery, and
through its affiliated company, Steadfast
REIT Investments, the company sponsors
public, non-traded REITs with current
portfolio values an estimated $1.5 billion.
3. The real estate investment trust, or REIT,
operates as its own investment class
according to federal tax law. The laws
governing REITs also apply to unit
investment trusts, in that the REIT pays
taxes first at the trust level and then at the
beneficiary level. The difference is that the
REIT is valued as a corporation, which
means that distributed dividends are not
considered taxable income to the trust.
4. Instead, the returns on a REIT are
considered income for the unit holder, with
the exception of qualified dividends. A
percentage of the dividends may also
count as a return of capital, which is not
taxed at that time but remains nontaxable
until the capital asset sells. At that time,
the investor is taxed for this amount as a
short- or long-term capital gain.
