I invested in a REIT — am I taxed only on distributions, or on everything?

The general rule is that an investor is taxed on income actually distributed, not on any book increase in the value of the units that hasn't been realised through an actual sale. That distinction matters for portfolio holders who track the fund's market value daily and worry every price move is a taxable event.

Of course, the fund itself must meet certain criteria to receive this tax treatment. At RASEEKH, we help you understand how your investment income (not only real estate) is classified for tax purposes before you make an entry or exit decision.