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By directing funds to real estate investment trusts (REITS), real estate investors can take advantage of the same tax benefits as mutual fund investors. Which of the following does NOT represent a REIT?

a) Residential property trust
b) Mortgage trust
c) Equity trust
d) Technology trust

1 Answer

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Final answer:

A technology trust does not represent a REIT because REITs are linked exclusively to real estate assets. REITs can specialize in residential, mortgage, and equity sectors, but they do not encompass technology.

Step-by-step explanation:

Real Estate Investment Trusts (REITs) are companies that own, operate, or finance income-generating real estate across a range of property sectors. These sectors can include residential properties through a residential property trust, lending for mortgages via a mortgage trust, or investing in properties directly with an equity trust. REITs are known for offering investors a number of tax benefits similarly found in mutual fund investments. However, technology trust does not represent a REIT because REITs are specifically linked to real estate assets and not to technology sectors. When considering REITs, investors may think about the potential capital gains from property values increasing, as well as the nonfinancial return of using the real estate, such as living in residential property.

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