Ellington Residential Mortgage REIT Announces the Income Tax Treatment of its 2019 Distributions
Shareholders should review their Forms 1099 as well as other 2019 tax statements that they will receive from their brokerage firms or other institutions to ensure that the statements agree with the information provided below. Additionally, shareholders are encouraged to consult with their own professional tax advisors with respect to their individual tax consequences.
According to the Internal Revenue Code of 1986 (“the Code”), if a Real Estate Investment Trust (“REIT”) declares dividends in the last three months of a calendar year, with a record date in that calendar year, but which are payable in the first month of the following year, such dividends are considered paid for the recipient’s tax and Form 1099 reporting purposes on the record date and not on the payable date, to the extent the REIT has any remaining undistributed earnings and profits (as computed for federal income tax purposes) as of the last day of that calendar year. EARN declared a dividend in
During the calendar year 2019, the Company paid total distributions of
Declaration
|
Record
|
Payable
|
Total
|
Total
|
Box 1a
|
Box 2a
|
Box 5 199A
|
|
12/11/2018 |
12/31/2018 |
01/25/2019 |
$0.3400 |
$0.3400 |
$0.3124 |
$0.0276 |
$0.3124 |
|
03/04/2019 |
03/29/2019 |
04/25/2019 |
$0.3400 |
$0.3400 |
$0.3124 |
$0.0276 |
$0.3124 |
|
06/11/2019 |
06/28/2019 |
07/25/2019 |
$0.2800 |
$0.2800 |
$0.2573 |
$0.0227 |
$0.2573 |
|
09/11/2019 |
09/30/2019 |
10/25/2019 |
$0.2800 |
$0.2800 |
$0.2573 |
$0.0227 |
$0.2573 |
|
12/13/2019 |
12/31/2019 |
01/27/2020 |
$0.2800 |
$0.0476 |
$0.0437 |
$0.0039 |
$0.0437 |
During 2019, the Company did not generate qualified dividend income (QDI). As set forth above, all of the ordinary dividends deemed paid in 2019 are considered qualified REIT dividends for the purpose of Section 199A of the Code. Further, no portion of the Company's 2019 distributions is expected to consist of unrelated business taxable income (UBTI), which is subject to special tax reporting for certain tax exempt investors, or is expected to consist of excess inclusion income.
Cautionary Statement Regarding Forward-Looking Statements
This press release contains forward-looking statements within the meaning of the safe harbor provisions of the Private Securities Litigation Reform Act of 1995. Forward-looking statements are not historical in nature and can be identified by words such as "anticipate," "estimate," "will," "should," "may," "expect," "project," "believe," "intend," "seek," "plan" and similar expressions or their negative forms, or by references to strategy, plans, or intentions. For example, our results can fluctuate from month to month and quarter to quarter depending on a variety of factors, some of which are beyond our control and/or difficult to predict, including, without limitation, changes in interest rates, changes in default rates and prepayment speeds, and other changes in market and economic conditions. Forward-looking statements involve numerous risks and uncertainties. Our actual results may differ from our beliefs, expectations, estimates, and projections and, consequently, you should not rely on these forward-looking statements as predictions of future events. Furthermore, forward-looking statements are subject to risks and uncertainties, including, among other things, those described under Item 1A to the Company's Annual Report on Form 10-K filed on
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Source:
Investors:
Ellington Residential Mortgage REIT
Investor Relations
(203) 409-3773
info@earnreit.com
or
Media:
Amanda Klein or Kevin FitzGerald
Gasthalter & Co.
for Ellington Residential Mortgage REIT
(212) 257-4170
Ellington@gasthalter.com