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  • Cousin Dupree
    replied
    Originally posted by HM7 View Post
    Net Rental Income Loss (Box 2) was only a small negative amount; 2% of my commitment amount.
    I was thinking a large amount of depreciation is taken upfront, so I was expecting a larger loss. This is not much of an issue this year since there wasn't much operating income to offset; but it will be needed for future years when operating income picks up.
    Anyone else with the same concern? Hopefully depreciation comes in future years?
    I am in the Medical Properties Access fund and share your concern too. My Box 2 was 0.5% of my commitment amount. Total distributions since 2/20 have been 0.8% of my commitment. Is the general expectation for these kinds of funds to get tiny distributions along the way then a verylarge payout at the end when properties are sold? The promo materials say "New Era is projecting a 25% annualized gross return over the life of the projects." Has this just been a bad year?

    Leave a comment:


  • PhysicianOnFIRE
    replied
    I got my CityVest K-1 today (DLP Lending Fund).

    I had already filed an extension as I'm waiting on several others.

    Leave a comment:


  • HM7
    replied
    Net Rental Income Loss (Box 2) was only a small negative amount; 2% of my commitment amount.
    I was thinking a large amount of depreciation is taken upfront, so I was expecting a larger loss. This is not much of an issue this year since there wasn't much operating income to offset; but it will be needed for future years when operating income picks up.
    Anyone else with the same concern? Hopefully depreciation comes in future years?

    Leave a comment:


  • VagabondMD
    replied
    Originally posted by The White Coat Investor View Post
    Just as an update, I checked in on this with CityVest. Long story short: They just changed accountants after getting terrible service from theirs and hope to have them out within a few weeks. If you're in the Trion fund, it'll take even longer as Trion hasn't sent their K-1 to CityVest.

    I'm personally still waiting on 4 K-1s, including the CityVest one. It's kind of par for the course with private real estate investments. I would definitely expect to not only file an extension each year, but also to file in multiple states if you decide to use these investments.
    Thank you for following up with this. All three of my K-1's with CityVest dropped yesterday late afternoon, including Trion.

    Leave a comment:


  • The White Coat Investor
    replied
    Originally posted by Lithium View Post

    Yeah, I only bother with capturing losses in the super aggressive states like California and New York. CPAs will disagree on whether it is necessary to file returns in states when there is zero tax liability for the year just to get the losses on the books before reconciling these with gains in later years, but that is what I do. I managed to muddle through two K1’s and three state returns this year without a CPA and still didn’t pay for any tax software, but not going to lie, it was tough.
    My accountant assures me we don't need to file each year and will still get to use all of those losses when the time comes.

    Leave a comment:


  • The White Coat Investor
    replied
    Just as an update, I checked in on this with CityVest. Long story short: They just changed accountants after getting terrible service from theirs and hope to have them out within a few weeks. If you're in the Trion fund, it'll take even longer as Trion hasn't sent their K-1 to CityVest.

    I'm personally still waiting on 4 K-1s, including the CityVest one. It's kind of par for the course with private real estate investments. I would definitely expect to not only file an extension each year, but also to file in multiple states if you decide to use these investments.

    Leave a comment:


  • Lithium
    replied
    Originally posted by VagabondMD View Post

    The multiple state filing is not a big deal, according to my accountant. I am not sure if it is even 100% necessary (but check with your accountant).
    Yeah, I only bother with capturing losses in the super aggressive states like California and New York. CPAs will disagree on whether it is necessary to file returns in states when there is zero tax liability for the year just to get the losses on the books before reconciling these with gains in later years, but that is what I do. I managed to muddle through two K1’s and three state returns this year without a CPA and still didn’t pay for any tax software, but not going to lie, it was tough.

    Leave a comment:


  • CordMcNally
    replied
    Financial prowess is measured in the number of states you have to file returns in. Consider yourselves lucky.

    Leave a comment:


  • VagabondMD
    replied
    Originally posted by G View Post
    So, if I'm reading it correctly, my investment is filing K-1s in 6 states.

    Anybody reading this, note that there is zero chance that this is worth the time and money. Even if I had invested 20X as much, it would still not be worth it.

    Although I take FULL responsibility, I wish somebody had highlighted this pretty huge drawback...perhaps I missed it in the endless stream of RE salesmanship coming from the WCI network.
    The multiple state filing is not a big deal, according to my accountant. I am not sure if it is even 100% necessary (but check with your accountant).

    Leave a comment:


  • G
    replied
    So, if I'm reading it correctly, my investment is filing K-1s in 6 states.

    Anybody reading this, note that there is zero chance that this is worth the time and money. Even if I had invested 20X as much, it would still not be worth it.

    Although I take FULL responsibility, I wish somebody had highlighted this pretty huge drawback...perhaps I missed it in the endless stream of RE salesmanship coming from the WCI network.

    Leave a comment:


  • G
    replied
    Originally posted by Neuro View Post
    Its May 13th and still no sign of the K1's.
    Yeah, federal extension will be mailed tomorrow.

    what happens if you get a bunch of state returns?

    this is among the poorer investment decisions that I have ever made!

    Leave a comment:


  • Neuro
    replied
    Its May 13th and still no sign of the K1's.

    Leave a comment:


  • G
    replied
    Originally posted by Larry Ragman View Post

    Yes, fair point. I agree from that perspective. The question then would be, if you went directly to the underlying fund with a larger investment, would the management of the underling fund do better in minimizing your hassle factor. Probably not if this is not going to be a primary investment.
    Apparently I would have gotten my K-1 a couple weeks ago and also not paid an extra layer of fees to cityvest. Oh well.

    Leave a comment:


  • Neuro
    replied
    I got the same information as G from Alan regrading their accountants. Hopefully they are able to get it out to us before May 17th.

    Just like some of the above folks, convenience is a big factor for me with small kids and a working spouse. I also like my primary job as a physician and this has been a minor inconvenience. Will rethink twice before going for another investment like this.

    Leave a comment:


  • Larry Ragman
    replied
    Originally posted by VagabondMD View Post

    I am using the entire pie as the denominator. That is, a few thousand dollars divided by my entire net worth is not worth the hassle. If there were 30% returns, I would be equally happy and nervous about them.
    Yes, I understood what you meant and agree with you. I infer you have no intention of making an even bigger investment to grow the numerator, and even if you did your annoyance would increase rather than becoming an absolute value worth the hassle? If so, fair enough.

    Leave a comment:

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