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Updated almost 5 years ago,

User Stats

16
Posts
2
Votes
T Lee
  • Austin, TX
2
Votes |
16
Posts

Taxes for Solo K investing in MF syndication

T Lee
  • Austin, TX
Posted

Would someone please explain the difference in taxes between investing in MF syndication using Solo K versus using "regular" funds from my checking account?  

Let's say I invest $100k in a MF syndication, giving me 20% interest, and I get quarterly distributions, plus when the apartment complex is sold, I get a share of the profit from the sale. Cost segregation is used.

1. If I use my Solo K to invest in the syndication, what taxes would I pay on monthly or quarterly distributions? What taxes would I pay on my 20% share of the profit from the sale -- would the profits be taxed at the UBTI rate of 37%? 

2. If I use "regular" money from my checking account to invest in the syndication, then what taxes would I pay on the distributions and the profit?

3. How does taxation change if cost segregation is not used? 

Thank you to anyone out there kind enough to help me understand this! 

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