Reporting Details for Ares Commercial Real Estate 2024 Tax Information
Ares Commercial Real Estate Corporation (NYSE: ACRE) has announced the 2024 tax treatment for its common stock distributions, identified by CUSIP # 04013V-10-8. This important reporting information provides shareholders with the details they need to report their dividends and distributions accurately for the 2024 tax year. The company has shared a comprehensive breakdown of the distribution details, including the allocation to ordinary dividends, capital gains, and other relevant categories. Below is a summary of the reporting data.
Tax Treatment of Ares Commercial Real Estate’s 2024 Distributions
Ares Commercial Real Estate Corporation has provided specific reporting categories for its distributions, allowing shareholders to understand how various portions of their distributions are treated for tax purposes. The detailed information is available in the table below, which summarizes the cash distribution per share and the tax components for each payment.
Distribution Breakdown
| Record Date | Payment Date | Cash Distribution Per Share | Allocable to 2024 | Total Ordinary Dividends | Qualified Dividends | Total Capital Gain Distributions | Nondividend Distributions | Section 199A Dividends |
|---|---|---|---|---|---|---|---|---|
| 12/29/2023 | 01/17/2024 | $0.3300 | $0.0000 | $0.0000 | $0.0000 | $0.0000 | $0.0000 | |
| 03/28/2024 | 04/16/2024 | $0.2500 | $0.2500 | $0.2242 | $0.0000 | $0.0000 | $0.0258 | |
| 06/28/2024 | 07/16/2024 | $0.2500 | $0.2500 | $0.2242 | $0.0000 | $0.0000 | $0.0258 | |
| 09/30/2024 | 10/15/2024 | $0.2500 | $0.2500 | $0.2242 | $0.0000 | $0.0000 | $0.0258 | |
| 12/31/2024 | 01/15/2025 | $0.2500 | $0.0000 | $0.0000 | $0.0000 | $0.0000 | $0.0000 |
Summary of Key Tax Components
- Total Cash Distribution per Share: Ares Commercial Real Estate Corporation has declared a total distribution of $0.7500 per share for the 2024 year, broken down across multiple payments.
- Allocable to 2024: Of the total distributions, $0.6726 is allocated to the 2024 tax year, with the remaining portions of the distributions subject to different tax treatment.
- Ordinary Dividends: The total ordinary dividends for 2024 amount to $0.6726. These are subject to standard income tax rates.
- Qualified Dividends: No qualified dividends have been declared for 2024. As such, none of the distributions qualify for the preferential tax treatment given to qualified dividends.
- Capital Gain Distributions: There are no capital gain distributions for 2024. All distributions are treated as either ordinary income or nondividend distributions.
- Nondividend Distributions: The nondividend distributions for the year total $0.0774. These distributions are typically considered returns of capital and are treated differently for tax purposes.
- Section 199A Dividends: No Section 199A dividends have been declared for 2024. These dividends are usually available to certain taxpayers under the Tax Cuts and Jobs Act for tax relief purposes.
Tax Reporting Details
For shareholders preparing their tax returns, Form 1099 will provide key reporting information. Below is a breakdown of the boxes on Form 1099 and how they relate to Ares Commercial Real Estate Corporation’s distributions:
- Box 1a will reflect the total ordinary dividends, including all distributions from Ares Commercial Real Estate Corporation for 2024.
- Box 1b will report any qualified dividends, though there are none in this case.
- Box 2a will list the total capital gain distributions, but these are absent for 2024.
- Box 3 will include any capital gain distributions, which are also not applicable for this year.
- Box 5 will indicate Section 199A dividends, but no Section 199A dividends are applicable for the 2024 distributions.
It is also important to note that the distribution paid on January 17, 2024, of $0.3300 per share was treated as taxable in 2023 under Section 857(b)(9) of the Internal Revenue Code. This distribution should be accounted for in the previous year’s tax filings.
Additionally, the entire distribution of $0.2500 per share paid on January 15, 2025, is allocable to 2025, meaning it should be considered in the next tax year’s filings.
Shareholder Recommendations
Ares Commercial Real Estate Corporation encourages shareholders to consult with their personal tax advisors to ensure the proper reporting of the company’s distributions. Each shareholder’s tax situation is unique, and it is important to reporting dividends and distributions correctly according to applicable tax laws.
About Ares Commercial Real Estate Corporation
Ares Commercial Real Estate Corporation is a specialty finance company primarily focused on originating and investing in commercial real estate loans and related investments. The company operates through a national direct origination platform, providing and reporting flexible and reliable financing solutions for commercial real estate owners and operators across the United States.
Ares Commercial Real Estate Corporation specializes in originating senior mortgage loans and other types of financing, including subordinate financings, mezzanine debt, and preferred equity. The company’s approach emphasizes providing value-added financing for a variety of properties in liquid markets, ensuring the capital needs of its clients are met efficiently.
Structured as a real estate investment trust (REIT), Ares Commercial Real Estate Corporation is externally managed by a subsidiary of Ares Management Corporation, allowing the company to benefit from the broad expertise and resources of its management team. This structure enables the company to deliver innovative financing solutions that meet the evolving needs of the commercial real estate market.
Through its strategic approach, Ares Commercial Real Estate Corporation continues to lead in commercial real estate finance, offering clients solutions that help manage risk and unlock growth opportunities.ities.
