Announcement

Collapse
No announcement yet.

What will complicate my tax return?

Collapse
X
 
  • Filter
  • Time
  • Show
Clear All
new posts

  • Larry Ragman
    replied
    1. Getting a K-1 from your fund for investments in many states is no big deal. Your tax software can easily handle the multiple state returns. Yes, there is a cost for each state return but it is tens of dollars. Yes, there is a little bit of complexity, but not much really. And if you can’t do this don’t invest in syndicates.
    2. It is possible to find single state real estate funds/ syndicates if you want to avoid multiple state tax returns. You don’t have to look for one with no state income tax. Though that is a good play. You can also just buy in your home state, or just invest in public REITS.
    3. What are you trying to accomplish with your real estate investing. These issues are minor, so you are in danger of letting the tax tail wag the investment dog.

    Leave a comment:


  • NinjaDoc
    replied
    Originally posted by PHANTASOS View Post

    Alpha Investing or other syndicator: If I want to avoid filing lots of state returns, I could only buy into syndications domiciled in states with no income tax (Alaska, Florida, Nevada, South Dakota, Texas, Washington, and Wyoming).
    Wondering the same myself. If you don't have to pay state income tax when investing in syndications in these states, wouldn't syndications in these states generally be more popular? This is assuming all else is relatively equal...I realize there are many factors to consider when investing in syndications.

    Leave a comment:


  • PHANTASOS
    replied
    I guess the question is: has anyone figured out a way to invest in this space without filling out 15 different state returns while still having some measure of diversification?

    Leave a comment:


  • jfoxcpacfp
    replied
    Could you be more specific - what, exactly, is your question? Thx!

    Leave a comment:


  • PHANTASOS
    started a topic What will complicate my tax return?

    What will complicate my tax return?

    I am planning to expand my taxable investing this year into different real estate opportunities and want to understand how my tax return will be complicated by different investments (I know that shouldn't be my primary consideration, but I want to understand it before wading in).

    If I am wrong on any of these, or if you think there is other advice I might find helpful, please comment. The underlying assumption is that I would be investing in real estate in a state other than my own. I already file a state return in my home state. I use turbotax.

    Acretrader : I believe the person I spoke with said it is unlikely I would need to file a state return because most of their entities pay tax prior to issuing a K-1.

    DLP Housing Fund LLC: I like this, but I think I heard the owner say in one of the videos with WCI that it could require filing state returns in several states.

    Alpha Investing or other syndicator: If I want to avoid filing lots of state returns, I could only buy into syndications domiciled in states with no income tax (Alaska, Florida, Nevada, South Dakota, Texas, Washington, and Wyoming).

    I know some complexity is inevitable, but I'm trying to avoid 10% of my portfolio making my taxes 10000% more complicated.

    Thanks

Working...
X