Which of the following is likely to occur upon the sale of a REIT-owned property?

Multiple Choice

• If a capital loss is realized, the loss can be passed through to individual investors.

• If a capital gain is realized, the REIT can retain the gain for future investment and be taxed at the appropriate corporate capital gains tax rate.

• If a capital gain is realized, the REIT can retain the gain for future investment and be taxed at the shareholder's capital gains tax rate.