Western Asset Mortgage Capital Corporation Announces Tax Characteristics of 2020 Dividends
February 03 2021 - 4:15PM
Business Wire
Western Asset Mortgage Capital Corporation (the “Company”)
(NYSE: WMC) announced today the tax treatment of its common stock
dividends declared in 2020.
The below information is provided to assist the Company’s
stockholders with tax reporting requirements related to dividend
distribution of taxable income by the Company. Stockholders should
receive IRS Form 1099-DIV containing this information from their
brokers, transfer agents or other institutions. These tax
statements should be reviewed to ensure that they agree with the
information provided below.
Tax Treatment of Distributions
The Federal Income Tax classification of the 2020 dividend
distributions on the Company’s common stock, as it is expected to
be reported on Form 1099-DIV, is set forth in the following
table:
Record Date
Payment Date
Distribution Rate per
Share
Total Ordinary
Dividends
Qualified Dividends
Total Capital Gains
Distributions
Section 199A
Dividends(3)
Total Return of
Capital(4)
12/28/2020
1/26/2021
$0.06(1)
-
-
-
-
-
10/2/2020
10/26/2020
$0.05
-
-
-
-
$0.05
12/31/2019
1/24/2020
$0.31(2)
$0.155(2)
-
-
$0.155
$0.155
Total
$0.42
$0.155
-
-
$0.155
$0.205
(1)
The cash distributions made on
January 26, 2021 with a record date of December 28, 2020 are
treated as received by stockholders on January 26, 2021 and taxable
in calendar year 2021. The taxable characteristics of these
distributions will be determined in January of 2022.
(2)
The cash distributions made on
January 24, 2020 with a record date of December 31, 2019 had only
50% treated as received by stockholders on December 31, 2019 and
taxable in calendar year 2019 as ordinary income with the remaining
50% taxable in calendar year 2020 and treated as “Return of
Capital”.
(3)
Section 199A dividends are a
subset of, and included in, the ordinary dividends amount.
(4)
The cash distributions made in
the calendar year 2020 are considered “Return of Capital” due the
adverse impact of the COVID-19 pandemic on the Company’s
operations. The Company estimated taxable losses for the fiscal
year ending December 31, 2020.
Consult Your Tax Advisor
Stockholders may have additional reporting obligations to the
Internal Revenue Service and/or other tax authorities.
The U.S. federal income tax treatment of holding The
Company’s common stock to any particular stockholder will depend on
the stockholder’s particular tax circumstances. You are urged to
consult your tax advisor regarding the U.S. federal, state, local
and foreign income and other tax consequences to you, in light of
your particular investment or tax circumstances, of acquiring,
holding and disposing of the Company’s common stock.
The Company does not provide tax, accounting or legal advice.
Any tax statements contained herein were not intended or written to
be used, and cannot be used for the purpose of avoiding U.S.,
federal, state or local tax penalties. Please consult your advisor
as to any tax, accounting or legal statements made herein.
ABOUT WESTERN ASSET MORTGAGE CAPITAL CORPORATION
Western Asset Mortgage Capital Corporation is a real estate
investment trust that invests in, acquires and manages a diverse
portfolio of assets consisting of Residential Whole Loans,
Commercial Loans, Non-Agency CMBS, Non-Agency RMBS, GSE Risk
Transfer Securities and to a lesser extent Agency RMBS, Agency CMBS
and ABS. The Company’s investment strategy may change, subject to
the Company’s stated investment guidelines, and is based on its
manager Western Asset Management Company, LLC's perspective of
which mix of portfolio assets it believes provide the Company with
the best risk-reward opportunities at any given time. The Company
is externally managed and advised by Western Asset Management
Company, LLC, an investment advisor registered with the Securities
and Exchange Commission and a wholly-owned subsidiary of Franklin
Resources, Inc. Please visit the Company’s website at
www.westernassetmcc.com.
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version on businesswire.com: https://www.businesswire.com/news/home/20210203005882/en/
Investor Relations Contact: Larry Clark Financial Profiles, Inc.
(310) 622-8223 lclark@finprofiles.com
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