TWO Announces 2024 Dividend Tax Information
NEW YORK--(BUSINESS WIRE)--January 29, 2025--
TWO (Two Harbors Investment Corp, NYSE: TWO), an MSR-focused REIT, announced today the tax treatment of the company's common stock and preferred stock dividends declared in 2024. This information is provided to assist stockholders with tax reporting requirements related to dividend distribution of taxable income by TWO. Stockholders should review the 2024 tax statements received from their brokerage firms or other institutions to ensure that the statements agree with the information provided below. Additionally, as each stockholder's tax situation may be different, stockholders are encouraged to consult with their own professional tax advisor with respect to their individual tax consequences.
Tax Treatment of the Common and Preferred Distributions
TWO is required to report the portion of its 2024 dividends that are treated as excess inclusion income for federal income tax purposes. No portion of the company's 2024 dividend distributions are expected to consist of excess inclusion income, which may be treated as unrelated business taxable income (UBTI) and subject to special tax reporting for certain tax-exempt investors.
The company declared dividends with respect to its common stock and Series A, Series B and Series C preferred shares on December 18, 2023. The record date for the company's common stock and Series A, Series B and Series C preferred distributions was January 12, 2024. Accordingly, these common and preferred distributions were treated as 2024 distributions for tax purposes and reported on the 2024 Form 1099-DIV. In addition, the company declared dividends with respect to its common stock and Series A, Series B and Series C preferred shares on December 18, 2024. The record date for the company's common stock distribution was January 3, 2025, and the record date for the company's Series A, Series B and Series C preferred distributions was January 10, 2025. Accordingly, these common and preferred distributions will be treated as 2025 distributions for tax purposes and reported on the 2025 Form 1099-DIV.
Distributions for TWO
The federal income tax classification of TWO's 2024 common and preferred stock distributions as it is expected to be reported on Form 1099-DIV is set forth in the following tables.
Box 1a
2024 FORM 1099-DIV -- Common Stock Total Box 1b Total Box 2a Total Box 3 Total Box 5 Total
--------------------------------------------------------------------------------- --------- ------------ ------------- ------------- ------------
2024 Total 2024 2024 2024 Capital 2024
Distribution Declaration Payable Distribution Ordinary Qualified Gain Nondividend Section 199A
Type Date Record Date Date Per Share Adjustments Dividends Dividends(1) Distributions Distributions Dividends(2)
-------------- ------------ ----------- ----------- ------------ ----------- --------- ------------ ------------- ------------- ------------
Cash 12/18/2023 1/12/2024 1/29/2024 $0.450000 $0.000000 $0.300225 $0.169520 $0.000000 $0.149775 $0.130705
-------------- ------------ ----------- ----------- ------------ ----------- --------- ------------ ------------- ------------- ------------
Cash 3/20/2024 4/4/2024 4/29/2024 $0.450000 $0.000000 $0.300225 $0.169520 $0.000000 $0.149775 $0.130705
-------------- ------------ ----------- ----------- ------------ ----------- --------- ------------ ------------- ------------- ------------
Cash 6/18/2024 7/5/2024 7/29/2024 $0.450000 $0.000000 $0.300225 $0.169520 $0.000000 $0.149775 $0.130705
-------------- ------------ ----------- ----------- ------------ ----------- --------- ------------ ------------- ------------- ------------
Cash 9/19/2024 10/1/2024 10/29/2024 $0.450000 $0.000000 $0.300225 $0.169520 $0.000000 $0.149775 $0.130705
-------------- ------------ ----------- ----------- ------------ ----------- --------- ------------ ------------- ------------- ------------
Totals $1.800000 $0.000000 $1.200900 $0.678080 $0.000000 $0.599100 $0.522820
------------------------------------------------------ ------------ ----------- --------- ------------ ------------- ------------- ------------
(1) - Qualified Dividends shows the portion of the amount in Box 1a that may be eligible for capital gains tax rates
(2) - Section 199A Dividends shows the portion of the amount in Box 1a that may be eligible for the 20% qualified business income deduction under
Section 199A
Box 1a
2024 FORM 1099-DIV -- Preferred Series A Total Box 1b Total Box 2a Total Box 3 Total Box 5 Total
--------------------------------------------------------------------------------- --------- ------------ ------------- ------------- ------------
2024 Total 2024 2024 2024 Capital 2024
Distribution Declaration Payable Distribution Ordinary Qualified Gain Nondividend Section 199A
Type Date Record Date Date Per Share Adjustments Dividends Dividends(1) Distributions Distributions Dividends(2)
-------------- ------------ ----------- ----------- ------------ ----------- --------- ------------ ------------- ------------- ------------
Cash 12/18/2023 1/12/2024 1/26/2024 $0.507810 $0.000000 $0.507810 $0.286731 $0.000000 $0.000000 $0.221079
-------------- ------------ ----------- ----------- ------------ ----------- --------- ------------ ------------- ------------- ------------
Cash 3/20/2024 4/12/2024 4/29/2024 $0.507810 $0.000000 $0.507810 $0.286731 $0.000000 $0.000000 $0.221079
-------------- ------------ ----------- ----------- ------------ ----------- --------- ------------ ------------- ------------- ------------
Cash 6/18/2024 7/12/2024 7/29/2024 $0.507810 $0.000000 $0.507810 $0.286731 $0.000000 $0.000000 $0.221079
-------------- ------------ ----------- ----------- ------------ ----------- --------- ------------ ------------- ------------- ------------
Cash 9/19/2024 10/11/2024 10/28/2024 $0.507810 $0.000000 $0.507810 $0.286731 $0.000000 $0.000000 $0.221079
-------------- ------------ ----------- ----------- ------------ ----------- --------- ------------ ------------- ------------- ------------
Totals $2.031240 $0.000000 $2.031240 $1.146924 $0.000000 $0.000000 $0.884316
------------------------------------------------------ ------------ ----------- --------- ------------ ------------- ------------- ------------
(1) - Qualified Dividends shows the portion of the amount in Box 1a that may be eligible for capital gains tax rates
(2) - Section 199A Dividends shows the portion of the amount in Box 1a that may be eligible for the 20% qualified business income deduction under
Section 199A
Box 1a
2024 FORM 1099-DIV -- Preferred Series B Total Box 1b Total Box 2a Total Box 3 Total Box 5 Total
--------------------------------------------------------------------------------- --------- ------------ ------------- ------------- ------------
2024 Total 2024 2024 2024 Capital 2024
Distribution Declaration Payable Distribution Ordinary Qualified Gain Nondividend Section 199A
Type Date Record Date Date Per Share Adjustments Dividends Dividends(1) Distributions Distributions Dividends(2)
-------------- ------------ ----------- ----------- ------------ ----------- --------- ------------ ------------- ------------- ------------
Cash 12/18/2023 1/12/2024 1/26/2024 $0.476560 $0.000000 $0.476560 $0.269086 $0.000000 $0.000000 $0.207474
-------------- ------------ ----------- ----------- ------------ ----------- --------- ------------ ------------- ------------- ------------
Cash 3/20/2024 4/12/2024 4/29/2024 $0.476560 $0.000000 $0.476560 $0.269086 $0.000000 $0.000000 $0.207474
-------------- ------------ ----------- ----------- ------------ ----------- --------- ------------ ------------- ------------- ------------
Cash 6/18/2024 7/12/2024 7/29/2024 $0.476560 $0.000000 $0.476560 $0.269086 $0.000000 $0.000000 $0.207474
-------------- ------------ ----------- ----------- ------------ ----------- --------- ------------ ------------- ------------- ------------
Cash 9/19/2024 10/11/2024 10/28/2024 $0.476560 $0.000000 $0.476560 $0.269086 $0.000000 $0.000000 $0.207474
-------------- ------------ ----------- ----------- ------------ ----------- --------- ------------ ------------- ------------- ------------
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