All Forum Posts by: Cody DeLong

@Will Hodges okay I got it. I guess I was misunderstanding the law. Glad I asked!

@Will Hodges also to clarify on my k1 I have an amount listed under ordinary business income which is my portion of the companies profits for the year. This is the amount of the unrealized capital gains? I have nothing under net capital gains because I sold no stock.

@Will Hodges I do not need the money instantly.  I think i'm just wondering, is it possible to make it a 70/30 partnership even if we're both bringing in the same amount of money?  My other business we all invested the same amount of cash when we started 8 years ago so its all been split evenly after salaries

@Justin Kane Because it's an opportunity fund I don't think I could do a loan and pay him back.  Not really sure thats how it works.  He'd be losing tax benefits by doing that, wouldn't he?

@Justin Kane pretty simple. He’s just investing. No participation besides putting his money in the fund. I’ll be doing everything. 

@Ashish Acharya What do you mean by source?

Myself and my friend both have some Capital Gains we'd like to defer into an opportunity fund to self invest.  He is going to be a more passive investor in this situation.  I'll be the one getting the deals, renovating, and everything else.  How would you structure the owner ship structure.  We're each bringing the same amount to the table as far as our capital gains.  Should we be doing an even split and then me taking a percentage of net fee for managing the projects?  We will be paying a property management company.  I guess what would you do?

@Will Hodges thank you for mentioning this K1 bit. I had asked this in another post and this was the answer I’m looking for. I’m sitting on my capital gains right now waiting to pay the state and fed a nice portion of it. However I planned on buying real estate anyways. A couple questions:

I have $52k in capital gains from my K1. I don’t have the full $52k, only $30k. But by the time I need to invest it I could have he full $52k,  will that matter when I do my taxes?  Can I say I put $52k into a self funded Opportunity Fund if I do plan on bringing that much in?

Second question is debt. Say I buy a property for $100k and the building is worth $50k. I take a loan out for $100k and spend the $52k to fix it up. That would all be fine as I can bring debt to the opportunity fund. 

The appraisal for my 11 unit here in Maine on a Commercial loan was only $1800. 

@Justin R. messaged!