50Plus.com - The REIT stuff: "The REIT stuff
Article By: Gordon Pape
Real estate investment trusts (REITs) have been exempted from the proposed new income trust tax. Gordon Pape has found a mutual fund that specializes in them.
When Finance Minister Jim Flaherty announced his new income trust tax, he allowed for one exception: real estate investment trusts, better known as REITs. He did not offer any rationale for giving REITs a pass, but it appears he was following the U.S. precedent where the sector was also given an exemption when that country cracked down on the trust phenomenon in the 1980s.
Assuming Mr. Flaherty doesn't change his mind later (which is unlikely) this means that income-seeking investors should seriously consider adding a REIT fund to their portfolio. The problem is that the choice is extremely limited, at least right now. That could change in the future, of course."
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