{
  "id": 6013485,
  "title": "BDC and Mortgage REIT Income Is Taxed Differently Than a Bank Dividend. Here's Where to Hold Each.",
  "url": "https://urgent.news/2026/09/06/bdc-and-mortgage-reit-income-is-taxed-differently-than-a-bank",
  "topic": "finance",
  "section": "Finance & Markets",
  "published": "2026-09-06T18:35:00.000Z",
  "source": {
    "name": "Yahoo Finance",
    "slug": "yahoo-finance",
    "url": "https://finance.yahoo.com/real-estate/articles/bdc-mortgage-reit-income-taxed-183500135.html"
  },
  "original_language": "en",
  "account": "Investing involves more than simply selecting strong stocks and bonds, and holding them long-term. Tax implications of investments should also be considered. Corporate bonds are fully taxable, while municipal bonds can avoid tax. Retirement accounts offer tax-free status for certain investments. Ultra-high-yield mortgage REITs and business development companies (BDCs) require attention to tax placement. The taxes you pay fund government services. Taxes apply to income earned. Dividends are taxed differently. REITs and BDCs pass income to shareholders as dividends, which are taxed at regular rates, not corporate rates. AGNC Investment (NASDAQ: AGNC), Annaly Capital (NYSE: NLY), Main Street Capital (NYSE: MAIN), and Ares Capital Management (NASDAQ: ARCC) offer high yields. Roth IRAs and Roth 401(k)s allow tax-free withdrawals of after-tax money. Placing certain investments in Roth accounts can minimize tax burden.",
  "summary": null,
  "key_points": [
    "Corporate bonds are fully taxable, unlike municipal bonds which can be tax-free",
    "Ultra-high-yield mortgage REITs and BDCs require careful tax placement due to dividend taxation",
    "Roth IRAs and Roth 401(k)s enable tax-free withdrawals of after-tax investments"
  ],
  "editors_take": null,
  "illustration": null,
  "coverage": {
    "outlets": 3,
    "also_reported_by": [
      {
        "outlet": "Motley Fool",
        "title": "BDC and Mortgage REIT Income Is Taxed Differently Than a Bank Dividend. Here's Where to Hold Each.",
        "url": "https://urgent.news/2026/09/06/bdc-and-mortgage-reit-income-is-taxed-differently-than-a-bank-6024896",
        "published": "2026-09-06T18:15:00.000Z"
      },
      {
        "outlet": "Nasdaq Markets",
        "title": "BDC and Mortgage REIT Income Is Taxed Differently Than a Bank Dividend. Here's Where to Hold Each.",
        "url": "https://urgent.news/2026/09/06/bdc-and-mortgage-reit-income-is-taxed-differently-than-a-bank-6019598",
        "published": "2026-09-06T18:35:00.000Z"
      }
    ]
  },
  "ai_generated": true,
  "disclaimer": "Summaries, key points and the editor’s take are written by software from other outlets’ reporting and may contain errors — always check the linked original."
}