JLL Income Property Trust Reports 2024 Dividend Tax Treatment
A majority of the firm's 2024 distributions will be taxed as long-term capital gains, with a portion classified as a return of capital.
January 31, 2025
Tax Treatment Breakdown
JLL Income Property Trust has disclosed the tax treatment of its 2024 dividends, revealing that approximately 82 percent of the distributions will be treated as long-term capital gains. The remaining 18 percent will be classified as a non-dividend distribution, commonly referred to as a return of capital. This classification impacts investors' tax obligations, particularly for those in taxable accounts.
The announcement, made on January 29, 2025, provides clarity for shareholders as they prepare for tax season. The tax-advantaged nature of the majority of these distributions means that investors will be subject to capital gains tax rates rather than ordinary income tax rates, potentially offering a lower tax burden depending on individual circumstances. The remaining portion, categorized as a return of capital, is not immediately taxable but reduces an investor’s cost basis in the investment.
Implications for Shareholders
JLL Income Property Trust is a non-traded real estate investment trust (REIT) that provides investors with exposure to a diversified portfolio of income-producing properties. The company strategically manages its dividend structure to maximize tax efficiency for shareholders while maintaining steady income distribution.
The filing was accompanied by a press release that further detailed the distribution breakdown. Investors who receive Form 1099-DIV will see the respective tax classifications reflected in the relevant sections: box 2a for long-term capital gains and box 3 for return of capital.
With tax season approaching, JLL Income Property Trust’s announcement allows investors to plan accordingly and consult tax professionals on potential implications. For long-term shareholders, the return-of-capital portion could have a compounding effect on future tax liabilities if and when shares are sold, as a lower cost basis increases taxable gains at the time of disposition.
JLL Income Property Trust continues to focus on delivering consistent returns while maintaining a tax-efficient structure. The latest tax treatment disclosure underscores the firm’s commitment to transparency and investor communication.
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