It is all in the learning. You know, I am not a financial expert. But, I try to learn and do try to manage my money. Some time before, I learned about Real Estate Investment Trusts.
According to Investopedia, “REIT is a company that own, operates or finances income generating real estate. ” Toronto’s real estate is highly expensive. Many finance advising websites wrote about how you can diversify your income stream by investing in REITs. With further looking in to it, I realized there are few companies (REIT) listed in TSX. With much consideration, I chose to buy few units of one. There was a non registered account which we started long time before. with minimum requirement at that time. There was TFSA in Canada when we started it.
I bought the REIT units in that account. When you live in Canada, you really have to understand the taxes. You have to pay taxes on all type of income. Dividend is taxed as well, if it is not generated in a registered account.
REIT taxes are different than the regular dividends. Aha, it is not even called dividend, it is called distribution. I wasn’t giving much thought to it, until now: I stumbled on this blog post, by RetireBeforeDad. Then I realized, the distribution is different than dividend. A quick search led me to Dividend Earner’s blog, to this post about REIT. It was written in 2018. I have to learn more about T3, ABC and stuff if I really wanted to have that REIT in non registered account. But, there is no such hassle if it is held in TFSA or RRSP.
I will have to do something for the REIT. Creating a life of abundance needs a lot of learning and action.
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