Free calculator · Real Estate
REIT Qualification Tester
Tests a company against the core REIT qualification rules, the 75 percent asset test, the 75 and 95 percent income tests, the 90 percent distribution requirement, the 100-shareholder minimum, and the 5/50 ownership rule. Inputs are the company’s asset and income percentages, distribution rate, shareholder count, and concentrated ownership share.
By Devon Coombs, CPA, MBA · Teaching Professor of Finance, Santa Clara University · Reviewed August 2026
From the author: Devon Coombs, CPA, MBA teaches finance at Santa Clara University and works with corporate teams on practical AI.
AI training for finance teams · Consulting · The 10 Laws of Finance
Interactive Tool
REIT Qualification Tester
Company profile
75% asset test
Real estate, cash & government securities
75% income test
Rents, mortgage interest, RE gains
95% income test
75%-test sources + dividends & interest
90% distribution
Of REIT taxable income (ex. net cap gain)
100-shareholder test
Minimum number of shareholders
5/50 rule
5 or fewer individuals owning shares
Overall
Qualifies as a REIT
Distributing ≥90% of taxable income lets the REIT take a dividends-paid deduction and avoid most entity-level federal tax.
Learn the concept
This calculator comes from the free Real Estate Finance course, where the concept is taught with readings, worked examples, and practice questions.
Embed this calculator on your site
Free to embed on any site; the widget includes an attribution link back to this page.
One useful finance email a week
A tool, a number worth knowing, and what it means for your money or your business. From Devon Coombs, CPA, MBA. No spam, unsubscribe anytime.
Built by Devon Coombs, CPA, MBA, Teaching Professor of Finance at Santa Clara University.