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W. P. Carey Inc.: 2024 Dividends and Their Tax Treatment

In a recent announcement dated January 31, 2025, W. P. Carey Inc. (traded as WPC on the NYSE) clarified the tax implications surrounding their dividends for the fiscal year 2024. As a significant player in the real estate investment trust (REIT) sector, understanding how dividends are taxed is crucial for investors aiming to optimize their tax liabilities.

W. P. Carey advises its stockholders to consult with their tax advisors to get detailed clarifications pertinent to their individual financial situations regarding these dividends, which are reported on Form 1099-DIV. This form is integral for taxpayers as it breaks down different categories of dividends that may be taxable differently.

The official Form 1099-DIV provides detailed information including the following key components:

• - Record Date: Identifies the cut-off point for shareholders to be eligible for the dividend payment.
• - Payment Date: The actual date on which the dividend is paid out to shareholders.
• - Ordinary Dividends: This figure includes the standard dividends distributed to shareholders and is fully taxable as income.
• - Capital Gain Distributions: These are profit distributions from the sale of assets and may be subject to different tax treatments than ordinary dividends.
• - Qualified Dividends: This subset typically enjoys a lower tax rate than ordinary dividends, provided they meet specific criteria outlined by the IRS.

Dividend Breakdown: Key Dates and Amounts

For 2024, the company has scheduled multiple dividend payments, with significant dates and amounts as follows:
1. First Payment:
- Record Date: December 29, 2023
- Payment Date: January 16, 2024
- Dividend per Share: $0.86 (ordinary)

2. Second Payment:
- Record Date: March 28, 2024
- Payment Date: April 15, 2024
- Dividend per Share: $0.865 (ordinary)

3. Third Payment:
- Record Date: June 28, 2024
- Payment Date: July 15, 2024
- Dividend per Share: $0.87 (ordinary)

4. Fourth Payment:
- Record Date: September 30, 2024
- Payment Date: October 15, 2024
- Dividend per Share: $0.875 (ordinary)

As noted in their report, W. P. Carey is required to categorize these dividend payments into ordinary and capital gains distributions, shaping the tax burden for their shareholders.

Overview of W. P. Carey's Business Model

W. P. Carey Inc. is notable for its extensive portfolio, consisting of a total of 1,430 net lease properties, which encompass a staggering 172 million square feet. This enterprise focuses on single-tenant properties primarily in the industrial and retail sectors across the U.S. and Europe. With long-term leases that include built-in rent escalations, W. P. Carey offers not only stability but also potential growth in investor returns over time.

With its offices located in major financial hubs such as New York, London, Amsterdam, and Dallas, W. P. Carey remains a robust option for investors seeking reliable income through dividend payouts.

Ultimately, it is imperative for shareholders to understand the tax ramifications of the dividends they receive. Seeking guidance from a tax professional can enable stockholders to navigate their individual liabilities and maximize their returns in accordance with tax laws applicable in the United States.

For further information, investors can consult their official website at www.wpcarey.com.