What is 90% distribution requirement?
The REIT rule to distribute at least 90% of REIT taxable income (excluding net capital gain) each year. With the dividends-paid deduction, this is the mechanism that avoids entity-level tax.
Where you will use it: this term comes up in the Real Estate Finance course, and the full course glossary collects every term in one place.
Related terms
From the free Real Estate Finance course by Devon Coombs, CPA, MBA.