Your dividends from last year may not match the distributions reported on your 1099, which include dividends and NAV Distributions. As you likely noticed, the dividends you earned during the fourth quarter are distributed to you or reinvested in January of the following year. For our funds that are structured as REITs for tax purposes, the IRS dictates that we can report those distributions in either year. This can also apply to NAV Distributions that were declared in the fourth quarter and paid in January of the next year. This is one of the ways that US REIT tax laws allow us to manage our funds in a tax-conscious way and maintain a fund’s REIT status with the IRS.
Note: In accordance with IRS regulations, we will no longer issue a Form 1099-DIV if your aggregate distributions from a fund in the given tax year were less than $10. This means that you may not receive tax documents for all of the funds in which you hold shares; however, you are still responsible for reporting distributions received on your tax returns.
