John At The Center

Weyerhauser, the lumber giant, is converting itself from a normal company to a real estate investment trust, or REIT.

Long term, that may be good news for shareholders. REITs don’t pay taxes (usually; the rules are complicated) but instead pass on profit, as capital gains or ordinary income, to shareholders. Avoiding double taxation has obvious benefits.

via Paying Taxes to Avoid Taxes – Floyd Norris Blog – NYTimes.com.