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	Real Estate Investment Trust REIT classifications REIT classifications The evolution of the REIT Should you invest in a REIT? Why are REITs so good for you as an investor? REIT Stock Exchange Listings REITs Types Not any company can be a REIT. In order to become a fully functioning REIT a corporation will have to meet certain guidelines and specifications. Once these have all been met then a corporation can be considered a pass through entity and it will then not have to worry about taxation at the corporate levels. The following are the Internal Revenue Codes provisions for becoming a REIT: The corporation will have to be structured as a corporation or something similar like a trust. Your would-be REIT has to be managed not just by one person but by a board of directors. All of the shares of the corporation must be completely transferable and there must be at least 100 different shareholders. The dividends that are paid out must be of at least 90 percent of the taxable income. In the last half of each tax year no more 50 percent of the corporation cannot be held  by less than 5 people. Some assets of the REIT can be invested in subsidiary REITs but no more than 20 percent  of the over all assets of the REIT. The REIT will have to have a minimum m of 75 percent of all its assets invested in real estate related investments. And last but not lest the REIT will have to make a minimum of 75 percent of their gross income fro either rent or mortgage interest.