Digital Realty, a global provider of cloud-neutral and data center solutions, has announced today the dividend tax for its common and preferred shares for the year 2023. The information provided below is based on the best available information to date, and Digital Realty’s tax return for the year ending December 31, 2023, has not yet been filed.
The taxable dividend for 2023 is $5.264529 per share and includes one quarterly payment announced in 2022 and made in January 2023, three quarterly payments announced and made in 2023, and a portion (32%) of one quarterly payment announced in 2023 and made in January 2024. The taxable dividend for 2023 will be reported on Form 1099-DIV as follows: $2.085936 per share (40%) as ordinary income and $3.178593 per share (60%) as capital gain distribution.
The table below presents this information on a quarterly basis:
Registration Dates
Payment Dates (1)
Cash Distribution (in dollars per share) (1)
Taxable Dividend (in dollars per share) (1)
Section 1a Ordinary Dividend (in dollars per share)
Section 1b Qualified Dividend (in dollars per share)
Section 2a Long-Term Capital Gain (in dollars per share)
Section 2b Unrecaptured Section 1250 Gain (in dollars per share)
Section 2f Section 897 Capital Gain (in dollars per share) (2)
Section 5 Section 199A Dividend (in dollars per share) (3)
Section 1061 Annual Capital Gain (in dollars per share) (4)
Section 1061 Three-Year Capital Gain (in dollars per share) (4)
12/15/2022
01/13/2023
$1.220000
$1.220000
$0.483394
$0.032350
$0.736606
$0.148736
$0.763829
$0.451044
$0.013545
$0.013545
03/15/2023
03/31/2023
$1.220000
$1.220000
$0.483394
$0.032350
$0.736606
$0.148736
$0.763829
$0.451044
$0.013545
$0.013545
06/15/2023
06/30/2023
$1.220000
$1.220000
$0.483394
$0.032350
$0.736606
$0.148736
$0.763829
$0.451044
$0.013545
$0.013545
09/15/2023
09/29/2023
$1.220000
$1.220000
$0.483394
$0.032350
$0.736606
$0.148736
$0.763829
$0.451044
$0.013545
$0.013545
12/15/2023
01/19/2024
$1.220000
$0.384529
$0.152360
$0.010196
$0.232169
$0.046880
$0.240749
$0.142164
$0.004269
$0.004269
$6.100000
$5.264529
$2.085936
$0.139596
$3.178593
$0.641824
$3.296065
$1.946340
$0.058449
$0.058449
(1)
Please note that from the quarterly payment in January 2024, in the amount of $1.22, $0.384529 is included in the taxable dividend for 2023, and $0.835471 will be considered as a dividend to be reported in 2024 for federal individual income tax purposes.
(2)
This represents Section 897 gain from the disposition of US real property interests, including Box 2a Long-Term Capital Gain. Section 897 applies to individuals who are not US residents and foreign corporations.
(3)
Since 2018, the Tax Cuts and Jobs Act added Section 199A, which allows for a new tax deduction based on certain qualified business income. Section 199A allows eligible individuals to deduct up to 20% of dividends from a real estate investment trust (Box 5 on Form 1099-DIV).
(4)
To comply with Section 1061 provisions in the Internal Revenue Code, Digital Realty discloses two additional categories of capital gain. Section 1061 generally applies to direct and indirect holders of “applicable partnership interests”. Please consult your tax advisor regarding the two additional categories disclosed here.
The taxable dividend for 2023 for Digital Realty Trust, Inc.’s cumulative preferred stock, Series J, is $1.312500 per share. For tax reporting purposes, $0.520044 per share (40%) will be reported on Form 1099-DIV as ordinary income, and $0.792456 per share (60%) will be reported as capital gain distribution.
The taxable dividend for 2023 for Digital Realty Trust, Inc.’s cumulative preferred stock, Series K, is $1.462500 per share. For tax reporting purposes, $0.579480 per share (40%) will be reported on Form 1099-DIV as ordinary income, and $0.883020 per share (60%) will be reported as capital gain distribution.
The taxable dividend for 2023 for Digital Realty Trust, Inc.’s cumulative preferred stock, Series L, is $1.300000 per share. For tax reporting purposes, $0.515092 per share (40%) will be reported on Form 1099-DIV as ordinary income, and $0.784908 per share (60%) will be reported as capital gain distribution.
FAQ Section:
1. What information is presented in the article?
The article provides information on the dividend tax for Digital Realty’s common and preferred shares for the year 2023.
2. What amounts does the taxable dividend for 2023 include?
The taxable dividend for 2023 is $5.264529 per share. It includes one quarterly payment made in January 2023, three quarterly payments made in 2023, and a portion of one quarterly payment made in January 2024.
3. How was the taxable dividend for 2023 reported on Form 1099-DIV?
The taxable dividend for 2023 was reported on Form 1099-DIV as follows: $2.085936 per share (40%) as ordinary income and $3.178593 per share (60%) as capital gain distribution.
4. What are the registration and payment dates in 2023?
The registration dates presented in the article are December 15, 2022, March 15, 2023, June 15, 2023, September 15, 2023, and December 15, 2023. The payment dates are January 13, 2023, March 31, 2023, June 30, 2023, September 29, 2023, and January 19, 2024.
5. What are the dividend sections for each category?
The dividend sections presented in the article are Section 1a Ordinary Dividend, Section 1b Qualified Dividend, Section 2a Long-Term Capital Gain, Section 2b Unrecaptured Section 1250 Gain, Section 2f Section 897 Capital Gain, Section 5 Section 199A Dividend, Section 1061 Annual Capital Gain, Section 1061 Three-Year Capital Gain.
6. What is Section 897?
Section 897 applies to individuals who are not US residents and foreign corporations that have gains from the disposition of US real property interests. It includes Box 2a Long-Term Capital Gain.
7. What is Section 199A?
Section 199A is a tax deduction introduced in 2018 that allows for a deduction of 20% of dividends from a qualified real estate investment trust. It includes Box 5 on Form 1099-DIV.
8. What are Sections 1061?
Sections 1061 refer to provisions in the Internal Revenue Code concerning capital gains. The article discloses two additional categories of capital gain associated with this section.
9. What are the taxable dividends for preferred stock Series J, K, and L?
The taxable dividend for 2023 for cumulative preferred stock Series J is $1.312500 per share. For Series K, it is $1.462500 per share, and for Series L, it is $1.300000 per share.
10. What are the tax reporting for preferred stock Series J, K, and L?
For Series J, the tax reporting is $0.520044 per share (40%) as ordinary income and $0.792456 per share (60%) as capital gain distribution. For Series K, it is $0.579480 per share (40%) as ordinary income and $0.883020 per share (60%) as capital gain distribution. For Series L, it is $0.515092 per share (40%) as ordinary income and $0.784908 per share (60%) as capital gain distribution.
Terms and Definitions:
– Digital Realty – a global provider of cloud-neutral and data center solutions.
– Dividend – a payment of a portion of a company’s profit to shareholders.
– Taxable dividend – the portion of the dividend that is subject to taxation.
– Form 1099-DIV – a tax form used in the United States to report dividends.
– Ordinary income – profit derived from a company’s regular activities.
– Capital gain distribution – profit from the sale of an investment or asset.
The source of the article is from the blog yanoticias.es