MDW1954 wrote:as SalvorHardin points out, most REITs aren't ITs as we understand them, because they hold assets directly (individual warehouses, shopping centres, or office blocks), and not the shares of property companies, as, say, TR Property does.
Within the HYP context, REITs are fine. TR Property-type ITs are another matter.
The simplest way to differentiate them surely is by their very different tax treatment?
I'm not aware that it is the tax treatment that drives the logic of allowing one but not the other in HYPs, but it's certainly a simple way of determining which is which.
REITs are best held in tax-sheltered accounts, in my view, due to the ability to reclaim the tax on the dividends.