Public Storage Announces Tax Treatment of 2017 Dividends
January 16 2018 - 7:06PM
Business Wire
Public Storage (NYSE:PSA) announced today the tax treatment of
the Company’s 2017 dividends. For the tax year ended December 31,
2017, distributions for the PSA common stock and all the various
series of preferred stock were classified as follows:
2017 1st Quarter
2nd Quarter 3rd Quarter 4th Quarter
Ordinary Income 99.9257 %
99.9195
%
100.0000
%
99.4648
%
Long-Term Capital Gain 0.0743 %
0.0805
%
0.0000
%
0.5352
%
Total 100.0000 %
100.0000
%
100.0000 %
100.0000
%
The ordinary income dividends do not constitute “qualified
dividend income.”
For the first and second quarters of 2017, the percentages of
the long-term capital gain that constitute unrecaptured section
1250 gain are 0.2623% and 91.4554% respectively. Corporate
shareholders subject to IRC §291 should treat 20% of the
unrecaptured section 1250 gain as ordinary income.
This release is based on the preliminary results of work on the
Company’s tax filings and is subject to correction or adjustment
when the filings are completed. The Company is releasing
information at this time to aid those required to distribute Forms
1099 on the Company’s distributions. No material change in the
classification is expected.
Alternative Minimum Tax
Alternative minimum tax adjustments are to be apportioned
between a real estate investment trust (“REIT”) and its
shareholders under Internal Revenue Code Section 59(d). Although
regulations have not yet been issued under that provision, based on
regulations issued pursuant to a similar provision of prior law and
the legislative history of the current provision, it appears that
such alternative minimum tax adjustments are to be apportioned to a
REIT’s shareholders to the extent that the REIT distributes its
regular taxable income. It is the Company’s policy to distribute
all of its regular taxable income and accordingly, all of the
Company’s alternative minimum tax adjustments are being apportioned
to the Company’s shareholders.
The Company has determined that -0.2273% of each distribution to
its shareholders for the tax year ended December 31, 2017
consists of an alternative minimum tax adjustment (i.e., for each
$1 of dividend reportable by a shareholder, $0.002273 represents a
negative alternative minimum tax adjustment). To determine your
share of the Company’s negative alternative minimum tax adjustment,
multiply the aggregate dollar amount of your reportable 2017
dividend from the Company (the sum of the amounts shown in Boxes 1a
and 2a of the Company’s 2017 Form 1099-DIV) by -0.002273.
If you are an individual, please refer to Internal Revenue
Service Form 6251, Alternative Minimum Tax–Individuals. Your share
of the alternative minimum tax adjustment should be input as a
negative amount in Part I, Line 18 (depreciation on assets
placed in service after 1986). If you are a corporation, please
refer to Internal Revenue Service Form 4626, Alternative Minimum
Tax–Corporations. Your share of alternative minimum tax adjustments
should be input as a negative amount on line 2a (depreciation of
post-1986 property).
If you have questions, please consult your tax advisor for
further guidance.
Company Information
Public Storage, a member of the S&P 500 and FT Global 500,
is a fully integrated, self-administered and self-managed real
estate investment trust that primarily acquires, develops, owns and
operates self-storage facilities. The Company’s headquarters are
located in Glendale, California. At September 30, 2017, the Company
had interests in 2,374 self-storage facilities located in 38 states
with approximately 157 million net rentable square feet in the
United States and 220 storage facilities located in seven
Western European nations with approximately 12 million net
rentable square feet operated under the “Shurgard” brand. The
Company also owns a 42% common equity interest in PS Business
Parks, Inc. (NYSE:PSB) which wholly owned and operated
approximately 28 million rentable square feet of commercial space
and had an interest in 395 apartments at September 30, 2017.
Additional information about Public Storage is
available on the Internet. The Company’s web site is
PublicStorage.com.
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version on businesswire.com: http://www.businesswire.com/news/home/20180116006910/en/
Public StorageClemente Teng(818) 244-8080, Ext. 1141
Public Storage (NYSE:PSA)
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