PS Business Parks, Inc. Announces Tax Treatment of 2017 Dividends
January 16 2018 - 7:08PM
Business Wire
PS Business Parks, Inc. (NYSE:PSB) announced today the tax
treatment of the Company’s 2017 dividends. For the tax year ended
December 31, 2017, distributions for the 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 100.0000% 97.9825%
100.0000%
85.4341%
Long-Term Capital Gain 0.0000% 2.0175%
0.0000%
14.5659%
Total 100.0000% 100.0000%
100.0000%
100.0000%
The ordinary income dividends do not constitute “qualified
dividend income.”
For the second quarter of 2017, the percentage of the long-term
capital gain that constitutes unrecaptured section 1250 gain is
75.9804%. 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 this
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 -0.1920% of each distribution to
its common shareholders for the tax year ended December 31,
2017 consists of alternative minimum tax adjustments (i.e., for
each $1 of dividend reportable by a shareholder, $0.00192
represents a negative alternative minimum tax adjustment). To
determine your share of the Company’s alternative minimum tax
adjustments, multiply the aggregate dollar amount of your
reportable 2017 dividends from the Company (the sum of the amounts
shown in Boxes 1a and 2a of the Company’s 2017 Form 1099-DIV) by
-0.00192.
If you are an individual, please refer to Internal Revenue
Service Form 6251, Alternative Minimum Tax—Individuals. Your share
of alternative minimum tax adjustments should be input as a
negative amount in Part I, Line 18 (depreciation on assets placed
in service after 1986). A corporation’s share of alternative
minimum tax adjustments should be input as a negative amount on
Internal Revenue Service Form 4626, Alternative Minimum
Tax—Corporations, on line 2a (depreciation of post-1986
property).
If you have questions, please consult your tax advisor for
further guidance.
Company Information
PS Business Parks, Inc., a member of the S&P SmallCap 600,
is a real estate investment trust (“REIT”) that acquires, develops,
owns and operates commercial properties, primarily multi-tenant
flex, office and industrial space. The Company defines “flex” space
as buildings that are configured with a combination of office and
warehouse space and can be designed to fit a number of uses
(including office, assembly, showroom, laboratory, light
manufacturing and warehouse space). As of December 31, 2017, the
Company wholly owned 28.0 million rentable square feet with
approximately 4,950 customers concentrated in six states and a
95.0% interest in 395 apartments.
Additional information about PS Business Parks, Inc. is
available on the Internet. The Company’s website is
psbusinessparks.com.
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PS Business Parks, Inc.Maria R. Hawthorne(818) 244-8080, Ext.
1370
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