Self storage fund and taxes

[Jeremy Marquez]

I’m considering investing in a self storage fund but I’m trying to understand if there will be any tax benefits.

Does this type of investment produce a K1? Does it provide similar tax benefit as a multi family syndication?

Thanks in advance for your thoughts on the topic.

[Jim Kittridge]

@Jeremy Marquez

Hey Jeremy, we have a fund in storage. Without knowing the exact situation, it generally produces income and therefore has taxes associated with it. If you’re getting a slice of equity, the depreciation may outweigh the income it produces on a yearly basis but you’ll have to pay it eventually.