Equity Residential Reports 2023 Dividend Income Tax Treatment

Rhea-AI Summary

Equity Residential (EQR) reported the tax status of its 2023 dividends paid to shareholders. The final allocations for common and preferred shares are detailed, with total distributions, capital gain distributions, and other relevant figures. The company did not incur foreign taxes in 2023 and advises shareholders to consult their own tax advisers for income tax consequences.

Tax Expert

The disclosure of dividend tax status by Equity Residential provides critical information for shareholders in terms of tax planning and compliance. The breakdown of ordinary dividends, qualified dividends and capital gain distributions, among other categories, has implications for individual tax liabilities. Shareholders can utilize this data to optimize their tax positions, potentially seeking strategies to minimize their taxable income through tax-loss harvesting or timing of dividend income.

Understanding the nuances of dividend taxation is essential, as ordinary dividends are taxed at individual income tax rates, while qualified dividends benefit from lower capital gains tax rates. The portion of the dividend classified as a nondividend distribution, often a return of capital, can reduce an investor's cost basis in the stock, thus affecting capital gains calculations upon sale of the stock.

For institutional investors, such as mutual funds or pension funds, this information impacts the tax efficiency of their investment portfolios and could influence investment decisions or fund performance reporting.

Financial Analyst

The announcement by Equity Residential regarding the tax status of its dividends is a significant piece of information for financial analysts and investors. The allocation of dividends between ordinary income and capital gains can affect the perceived attractiveness of the REIT's shares. Dividends with a higher portion of return of capital or qualified dividends are often more sought after due to their favorable tax treatment.

From a financial analysis perspective, the consistency of the dividend distributions and the composition of these dividends are indicative of the company's operational stability and financial health. The ability to pay out substantial dividends regularly is a positive signal to the market and can influence the stock's valuation.

Moreover, the data provided can be used to calculate metrics such as dividend yield and payout ratio, which are critical in comparing Equity Residential's performance to industry benchmarks and competitors.

Investment Advisor

For investment advisors, the tax allocation of dividends is a pivotal factor in crafting investment strategies for clients, particularly for those in higher tax brackets or those seeking income-generating investments. The detailed breakdown provided by Equity Residential allows advisors to assess the after-tax return on investment, which is a more accurate reflection of the value that shareholders will realize.

Advisors may also use this information to balance portfolios across various asset classes and investments, ensuring a diversification that takes into account not only the risk and return but also the tax implications of each investment. This can be especially relevant for clients with significant real estate exposure or those utilizing real estate investment trusts (REITs) as a means to generate passive income.

CHICAGO--(BUSINESS WIRE)-- Equity Residential (NYSE: EQR) today reported the tax status of its 2023 dividends paid to shareholders. The final allocations as they will be reported on Form 1099-DIV are in the tables below:

Record Date	Payable Date	Total Distribution Per Share	Box 1a Total	Box 1b	Box 2a	Box 2b	Box 2e	Box 2f	Box3	Box 5
			Ordinary Dividends	Qualified Dividends1	Total Capital Gain Distr.	Unrecap Sec. 1250 Gain2	Sec. 897 Ordinary Dividends1	Sec. 897 Capital Gain2	Nondividend Distributions	Sec. 199A Dividends1
Common Shares:
1/3/2023	1/13/2023	$0.625000	$0.444201	$0.000015	$0.180799	$0.042384	$0.000000	$0.180799	$0.000000	$0.444186
3/27/2023	4/14/2023	$0.662500	$0.470853	$0.000016	$0.191647	$0.044927	$0.000000	$0.191647	$0.000000	$0.470837
6/26/2023	7/14/2023	$0.662500	$0.470853	$0.000016	$0.191647	$0.044927	$0.000000	$0.191647	$0.000000	$0.470837
9/26/2023	10/13/2023	$0.662500	$0.470853	$0.000016	$0.191647	$0.044927	$0.000000	$0.191647	$0.000000	$0.470837
	Total	$2.612500	$1.856760	$0.000063	$0.755740	$0.177165	$0.000000	$0.755740	$0.000000	$1.856697
Preferred Shares Series K:
3/20/2023	3/31/2023	$1.036250	$0.736485	$0.000025	$0.299765	$0.070272	$0.000000	$0.299765	$0.000000	$0.736485
6/16/2023	6/30/2023	$1.036250	$0.736485	$0.000025	$0.299765	$0.070272	$0.000000	$0.299765	$0.000000	$0.736485
9/19/2023	10/2/2023	$1.036250	$0.736485	$0.000025	$0.299765	$0.070272	$0.000000	$0.299765	$0.000000	$0.736485
12/22/2023	1/2/2024	$1.036250	$0.736485	$0.000025	$0.299765	$0.070272	$0.000000	$0.299765	$0.000000	$0.736485
	Total	$4.145000	$2.945940	$0.000100	$1.199060	$0.281088	$0.000000	$1.199060	$0.000000	$2.945940
(1) - These amounts are a subset of the amounts in Box 1a.
(2) - These amounts are a subset of the amounts in Box 2a.
Pursuant to Treas. Reg. §1.1061-6(c), Equity Residential is disclosing below two additional amounts for purposes of Section 1061 of the Internal Revenue Code.
Section 1061 is generally applicable to direct and indirect holders of "applicable partnership interests."
The amount of Box 2a Capital Gains not included in the two additional amounts below are Section 1231 gains, which are not considered for purposes of Section 1061.

Record Date	Payable Date	Form 1099-DIV Box 2a	One Year Amounts	Three Year Amounts
		Total Capital Gain Distr. Per Share	Disclosure Per Share	Disclosure Per Share
Common Shares:
1/3/2023	1/13/2023	$0.180799	$0.009811	$0.009738
3/27/2023	4/14/2023	$0.191647	$0.010400	$0.010323
6/26/2023	7/14/2023	$0.191647	$0.010400	$0.010323
9/26/2023	10/13/2023	$0.191647	$0.010400	$0.010323
	Total	$0.755740	$0.041011	$0.040707
Preferred Shares Series K:
3/20/2023	3/31/2023	$0.299765	$0.016267	$0.016146
6/16/2023	6/30/2023	$0.299765	$0.016267	$0.016146
9/19/2023	10/2/2023	$0.299765	$0.016267	$0.016146
12/22/2023	1/2/2024	$0.299765	$0.016267	$0.016146
	Total	$1.199060	$0.065068	$0.064584

The Company did not incur any foreign taxes in 2023.

Because the Company has not yet completed and filed its 2023 tax returns, the income tax allocation information provided above is based on the best available information to date.

Shareholders are encouraged to consult their own tax advisers as to the federal, state and local income tax consequences of these dividends.

About Equity Residential

Equity Residential is committed to creating communities where people thrive. The Company, a member of the S&P 500, is focused on the acquisition, development and management of residential properties located in and around dynamic cities that attract affluent long-term renters. Equity Residential owns or has investments in 302 properties consisting of 80,191 apartment units, with an established presence in Boston, New York, Washington, D.C., Seattle, San Francisco and Southern California, and an expanding presence in Denver, Atlanta, Dallas/Ft. Worth and Austin. For more information on Equity Residential, please visit our website at www.equityapartments.com.

View source version on businesswire.com: https://www.businesswire.com/news/home/20240117217055/en/

Marty McKenna

(312) 928-1901

Source: Equity Residential

What is the ticker symbol for Equity Residential?

The ticker symbol for Equity Residential is EQR.

What dividends did Equity Residential report for 2023?

Equity Residential reported the tax status of its 2023 dividends paid to shareholders, including total distributions, capital gain distributions, and other relevant figures.

When are the dividends payable for common shares?

The dividends for common shares are payable on 1/13/2023, 4/14/2023, 7/14/2023, and 10/13/2023.

What is the total capital gain distribution per share for common shares?

The total capital gain distribution per share for common shares is $0.755740.

Did Equity Residential incur any foreign taxes in 2023?

No, the Company did not incur any foreign taxes in 2023.