when you move all the money out of the REIT you will have either a taxable gain or loss. if the proceeds you receive are different from your basis that you have a gain or loss. since you say this is a private ReIT, when you redeem the REIT you should be provided with a schedule that will allow you to compute your gain/loss. . some will be long-term some short-term the short-term is due to cashing in reinvested dividends that haven't been held one year.
