Real Estate (FundRise) Taxes

[Connor J. Miller]

Hello,

I would like to start my real estate investing journey through FundRise. However, filing taxes for this sounds super complicated and is the only thing stopping me from jumping in. What are the best ways for filing taxes for real estate? Also, what does a self-directed IRA account do?

Thanks!

[Jake Hottenrott]

@Connor J. Miller - Congrats on working towards taking the first step! From a quick read on the FundRise account, it looks like they will provide a 1099-DIV each year through their REIT. This will break out down by what type of payout your received, ordinary dividends, qualified dividends or a return of capital. This will help you track your basis in the investment for when you eventually sell (similar to a stock).

What in particular sounded complicated to you?  (genuine curiosity and I'd love to help if I could.0

A self directed IRA is an investment vehicle that uses retirement funds to invest in a multitude of options outside of the typical stocks, bonds and mutual funds. Here's a great article on it:

https://www.nerdwallet.com/blog/investing/self-directed-ira-right/