#USA #Dallas #Braemar Hotels #Tax Reporting #NYSE BHR

Tax Reporting for Braemar Hotels & Resorts Shareholders

Braemar Hotels & Resorts Inc., traded under the NYSE ticker BHR, has issued a new statement regarding the tax implications for its common and preferred share distributions for the year 2024. This announcement comes as part of Braemar's commitment to transparency and guidance for its investors, especially in understanding the federal tax treatment applicable to these distributions.

Background Details

On January 16, 2024, Braemar paid out distributions to shareholders who were recorded as of December 29, 2023. Notably, the announcement includes specific tax reportable amounts that shareholders must be aware of as they prepare for their 2024 tax filings. This proactive approach allows investors to anticipate how these distributions will affect their taxable income.

The company categorizes its distributable funds into various notified types which are relevant for tax purposes. The tax report includes details for common shares as well as several types of preferred stocks classified as Series B, D, E, and M. For instance:

• - The ordinary taxable dividend for common stock stands at $0.20 per share, representing 100% of the total cash per share, with no distributions being classified under Section 199A, capital gains, or return of capital.
• - For the Series B Cumulative Convertible Preferred Stock, the total cash is reported as $1.3752 per share where ordinary taxable dividends account for 100%, alongside a 75.51% return of capital.
• - The Series D Cumulative Preferred Stock distribution reveals a per share cash amount of $2.0624, again with the complete contribution categorized as ordinary taxable dividends.

Importance for Shareholders

Understanding these financial metrics is paramount for shareholders as they plan for tax responsibilities related to dividends received. With taxation on dividends potentially impacting an investor's net income, having a clear breakdown ensures that the shareholders can make informed financial decisions and consult their tax advisors accordingly.

All distributions for 2024 include a detailed report that can be accessed via the Corporate Actions section of the company's website, specifically the IRS Form 8937. This documentation provides a thorough breakdown of the return of capital involved in the transactions.

Looking Forward

Braemar Hotels & Resorts operates as a real estate investment trust focused on luxury hotels and resorts, and its moves in 2024 might reflect a strategic approach to maintaining shareholder satisfaction while navigating market challenges. The company's future moves are carefully monitored and will undoubtedly influence its market standing and shareholder relations moving forward.

In closing, Braemar's announcement is crucial as it not only fulfills regulatory requirements but also enhances its transparency with shareholders. The details provided serve as a solid foundation for stockholders as they prepare for an intricate tax season ahead. Stakeholders are encouraged to stay informed and consider professional tax advice to align their financial strategies according to the company’s distributions. This will allow for better management of their investment portfolios amidst changing fiscal landscapes.