REIT dividends are non-qualified, right?
Can someone let me know if this tax strategy makes sense?
Buy enough REITs to produce $12,000 in annual dividends. The standard deduction wipes out the ordinary income, and I get that $12K tax free.
Rest of income from stocks that have qualified dividends, and if I need more, selling shares. That's all capital gains, which at an annual income of $12,000, is 0%.
I make too much to contribute to a traditional IRA, which bones me with this strategy. Oh, if I only had a time machine and could face punch my younger self...