DALLAS, Feb. 2, 2015 /PRNewswire/ -- Ashford Hospitality
Trust, Inc. (NYSE: AHT) today announced the tax reporting (Federal
Form 1099-DIV) information for the 2014 distributions on its common
shares and its Series A, D, and E preferred shares.
The income tax treatment for 2014 for Ashford Hospitality Trust,
Inc. Common Stock CUSIP #044103109 traded on the NYSE under ticker
symbol "AHT" is as follows:
Distribution
Type
|
|
|
Distributions
Per Share
|
Ordinary Taxable
Dividend
|
Total Capital
Gain
Distribution
|
Return of
Capital
|
Total Cash Per
Share
|
$0.4800
|
$0
|
$0
|
$0.4800
|
Total Stock Per Share
(NYSE
MKT: AINC)
|
$0.6437
|
$0
|
$0
|
$0.6437
|
Total
Distributions
|
$1.1237
|
$0
|
$0
|
$1.1237
|
Percent
|
100.00%
|
0%
|
0%
|
100.00%
|
The income tax treatment for the 2014 distributions for Ashford
Hospitality Trust, Inc. Series A Preferred Stock CUSIP #044103208
traded on the NYSE under ticker symbol "AHTPrA" is as
follows:
Distribution
Type
|
|
|
Distributions
Per Share
|
Ordinary Taxable
Dividend
|
Total Capital
Gain
Distribution
|
Return of
Capital
|
Total Per
Share
|
$1.6031
|
$0
|
$0.0000
|
$1.6031
|
Percent
|
100.00%
|
0%
|
0%
|
100.00%
|
The income tax treatment for the 2014 distributions for Ashford
Hospitality Trust, Inc. Series D Preferred Stock CUSIP #044103406
traded on the NYSE under ticker symbol "AHTPrD" is as follows:
Distribution
Type
|
|
|
Distributions
Per Share
|
Ordinary Taxable
Dividend
|
Total Capital
Gain
Distribution
|
Return of
Capital
|
Total Per
Share
|
$1.5844
|
$0
|
$0
|
$1.5844
|
Percent
|
100.00%
|
0%
|
0%
|
100.00%
|
The income tax treatment for the 2014 distributions for Ashford
Hospitality Trust, Inc. Series E Preferred Stock CUSIP #044103505
traded on the NYSE under ticker symbol "AHTPrE" is as
follows:
Distribution
Type
|
|
|
Distributions
Per Share
|
Ordinary Taxable
Dividend
|
Total Capital
Gain
Distribution
|
Return of
Capital
|
Total Per
Share
|
$1.6875
|
$0
|
$0
|
$1.6875
|
Percent
|
100.00%
|
0%
|
0%
|
100.00%
|
The common distributions that the Company paid on January 15, 2014 to shareholders of record as of
December 31, 2013, are reportable in
2014. The common and preferred distributions that the company paid
on January 15, 2015 to shareholders
of record as of December 31, 2014
will be reportable in 2015.
On November 12, 2014, AHT
distributed shares in Ashford, Inc. (NYSE MKT: AINC) to the
shareholders of record as of the close of business on November 11, 2014 (each an "AHT Shareholder").
AHT shareholders were entitled to receive one share of AINC common
stock for each eighty seven shares of AHT common stock held as of
November 11, 2014. AHT is reporting
the distribution of AINC common stock as a return of capital
dividend for U.S. federal income tax purposes. Shareholders are
treated as receiving a return of capital dividend upon this
distribution equal to the fair market value of the AINC common
stock (and cash in lieu of fractional shares of such common stock)
received in the distribution and will take an adjusted basis, for
federal income tax purposes, in such shares equal to the fair
market value of such shares based on the market price on the date
of the distribution. The fair market value for federal income tax
purposes of AINC common stock based on the opening price on
November 13, 2014, the first day of
trading on the NYSE MKT, was $56.00
per share.
The above income tax discussion contains a general explanation
of certain U.S. federal income tax consequences of the distribution
of AINC shares to AHT shareholders. This information represents
AHT's general understanding of the application of certain existing
U.S. federal income tax laws and regulations relating to the
distribution. It does not constitute tax advice and does not
purport to be complete. Shareholders are urged to consult their tax
advisors regarding the particular consequences of the distribution,
including the applicability and effect of all U.S. federal, state
and local, and foreign tax laws. AHT urges shareholders to read the
November 11, 2014, Information
Statement distributed to AHT shareholders and as filed by AINC as
Exhibit 99.1 to its Amendment Number 7 of Form 10 dated
October 30, 2014, noting especially
the discussion under the heading "Our Separation From Ashford Trust – Certain U.S. Federal Income Tax
Consequences of the Separation".
In accordance with IRS Code Section 6045B, the Company has
posted Form 8937, Report of Organizational Actions Affecting Basis
of Securities, which may be found in the Corporate Actions section
of the company's website. This form provides detailed information
on the return of capital portion of the preferred and common share
distributions. The Company encourages shareholders to consult with
their own tax advisors with respect to the federal, state and
local, and foreign income tax effects of these dividends.
IRS CIRCULAR 230 NOTICE: TO ENSURE COMPLIANCE WITH IRS
CIRCULAR 230, SHAREHOLDERS ARE HEREBY NOTIFIED THAT: (A) ANY
DISCUSSION OF U.S. FEDERAL TAX ISSUES CONTAINED OR REFERRED TO IN
THIS COMMUNICATION IS NOT INTENDED OR WRITTEN TO BE USED, AND
CANNOT BE USED, BY SHAREHOLDERS FOR THE PURPOSE OF AVOIDING
PENALTIES THAT MAY BE IMPOSED ON THEM UNDER THE INTERNAL REVENUE
CODE; (B) SUCH DISCUSSION IS WRITTEN IN CONNECTION WITH THE
PROMOTION OR MARKETING BY AHT OF THE TRANSACTIONS OR MATTERS
ADDRESSED HEREIN; AND (C) SHAREHOLDERS SHOULD SEEK ADVICE BASED ON
THEIR PARTICULAR CIRCUMSTANCES FROM AN INDEPENDENT TAX ADVISOR.
Ashford is a self-administered real estate investment trust
focused on investing in the hospitality industry across all
segments and at all levels of the capital structure.
Additional information can be found on the Company's website at
www.ahtreit.com.
Certain statements and assumptions in this press release
contain or are based upon "forward-looking" information and are
being made pursuant to the safe harbor provisions of the Private
Securities Litigation Reform Act of 1995. These
forward-looking statements are subject to risks and
uncertainties. When we use the words "will likely result,"
"may," "anticipate," "estimate," "should," "expect," "believe,"
"intend," or similar expressions, we intend to identify
forward-looking statements. Such forward-looking statements
include, but are not limited to, the timing for closing, the impact
of the transaction on our business and future financial condition,
our business and investment strategy, our understanding of our
competition and current market trends and opportunities and
projected capital expenditures. Such statements are subject
to numerous assumptions and uncertainties, many of which are
outside Ashford's control.
These forward-looking statements are subject to known and
unknown risks and uncertainties, which could cause actual results
to differ materially from those anticipated, including, without
limitation: general volatility of the capital markets and the
market price of our common stock; changes in our business or
investment strategy; availability, terms and deployment of capital;
availability of qualified personnel; changes in our industry and
the market in which we operate, interest rates or the general
economy; and the degree and nature of our competition. These
and other risk factors are more fully discussed in Ashford's
filings with the Securities and Exchange Commission.
The forward-looking statements included in this press release
are only made as of the date of this press release. Investors
should not place undue reliance on these forward-looking
statements. We are not obligated to publicly update or revise
any forward-looking statements, whether as a result of new
information, future events or circumstances, changes in
expectations or otherwise.
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SOURCE Ashford Hospitality Trust, Inc.