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REITs
There was talk earlier this summer about the problems of
clubs investing in REITs due to tax filing. I believe it
was said that the club will have to report to every state
that the REIT does business in. If I personally, outside of
the club, invest in one would I have to file in every state
also? I am very interested in Commonwealth REIT but not if
I have to file in multiple states.

John
Hi John,

It is usually MLP (Master Limited Partnership) Pipeline companies that
are being discussed when the issue of filing in multiple states comes
up.

REIT's are a bit more difficult to handle, tax wise, than common
stocks. They frequently report the information you need to use to
file your taxes extremely late. This makes them very unattractive as
a club investment. Whether that would be a problem for you if you
had them in your personal portfolio is up to you.

You did the right thing by asking the question prior to making the purchase.

--
Laurie Frederiksen
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