Ares Commercial Real Estate Corporation Announces Tax Reporting Information for Calendar Year 2024
Friday, Jan 31, 2025 6:11 am ET
3min read Ares Commercial Real Estate Corporation (ACRE) has recently announced the tax reporting information for its common stock distributions for the calendar year 2024. The company's distributions for the year were allocated as follows:
* The entire distribution of $0.33 per share in January 2024 was treated as taxable in 2023 pursuant to Section 857(b)(9) of the Internal Revenue Code.
* The distributions of $0.25 per share in March, June, and September 2024 were allocable to 2024, with $0.2242 treated as ordinary dividends and $0.0258 as nondividend distributions.
* The distribution of $0.25 per share in December 2024 is allocable to 2025.
The allocation of the January 2025 distribution to 2025 impacts the overall tax strategy for ACRE by deferring the tax liability to a later year. This strategy can be beneficial for investors in several ways, including tax deferral, potential for lower tax rates, and flexibility in tax planning. However, it also introduces uncertainty and potential risks related to future tax rates and complexity.
In conclusion, the tax reporting information for ACRE's common stock distributions in 2024 has important implications for investors. The allocation of the January 2025 distribution to 2025 provides investors with tax deferral benefits and flexibility in tax planning, but also introduces uncertainty and potential risks. Investors should consult with their tax advisors to determine the best strategy for managing their tax liabilities in light of ACRE's distribution allocation.
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