#United States #Dallas #Ashford Hospitality #preferred shares #Tax Reporting

Ashford Hospitality Trust 2024 Tax Reporting for Preferred Shares

On January 27, 2025, Ashford Hospitality Trust, Inc. (NYSE: AHT) announced important tax reporting details regarding the distributions for its preferred shares for the 2024 fiscal year. This announcement highlights the income tax treatment applicable to various preferred shares, offering valuable insights to investors and stakeholders.

Overview of Preferred Share Distributions

Ashford Hospitality Trust manages several series of preferred stocks, including Series D, F, G, H, I, J, and K. The distributions that occurred on January 16, 2024, were for shareholders who recorded ownership as of December 29, 2023. For shareholders recording on December 31, 2024, the corresponding distributions paid on January 15, 2025, will be reportable in the following year.

The tax treatment details for each of the series of preferred shares include the total cash per share, along with the breakdown into ordinary taxable dividends, capital gain distributions, and return of capital. Here’s a brief overview of key distributions:

Example of Distributions

• - Series D (CUSIP #044103406):

- Total Cash Per Share: $2.1124
- Ordinary Taxable Dividend: 100%
- Return of Capital: 55.5798% of cash distributed.

• - Series F (CUSIP #044103604):

- Total Cash Per Share: $1.8436
- All amounts are classified as ordinary taxable dividends.

Full Breakdown of Distribution Types

Each of the preferred shares is evaluated for tax implications. Typically, distributions are classified into four categories: ordinary taxable dividends, Section 199A dividends, capital gain distributions, and returns of capital. For instance, many of the preferred series allocations revealed 100% ordinary taxable dividends with notable percentages allocated as returns of capital.

Importance of This Information

These details are essential for shareholders, suggesting the federal form needed for tax filings in 2024. With various significant returns of capital identified, investors are advised to consider consultation with tax advisors to understand broader implications on personal tax situations.

Corporate Actions and Future Prospects

Additionally, Ashford Hospitality Trust periodically releases Form 8937, which outlines significant organizational actions affecting the basis of securities. This form aids investors in understanding the return of capital’s impact on their investments.

Given that Ashford Hospitality Trust primarily invests in upper upscale, full-service hotels, its strategy and performance have direct implications for the hospitality sector. Investors must stay informed on these corporate actions as they can influence market sentiments and personal fiscal evaluations.

Conclusion

As we move into 2025, understanding the 2024 distributions and their taxation is crucial for current and prospective investors in Ashford Hospitality Trust. Their focus on investor communication reflects a continuous effort to provide transparency during a time when financial literacy is increasingly impactful for investment decisions. Stakeholders are encouraged to keep abreast of upcoming reports and consult actively with financial advisors to optimize their tax outcome concerning these preferred shares.