All Forum Posts by: Evan Loader

@Eddie L. My situation is neither situation, it is not a PTP or Re characterization of income.

Both K-1 properties, the one showing passive gain and one showing a passive loss, are located in GA.

@Eddie L. Extensions filed last week so that is covered. As for the amount, if actually owed, is not large so awaiting to hear back from the supervisor CPA. If I owe it, fine. Not worried about a few extra days of penalties/interest to get verification on right answer.

My CPA firm is preparing my 2021 taxes, this is my 2nd year using them and I haven't had any notable issues until now. I invest significantly in syndication deals so I have a handful of K-1s from multiple states. I get an email today from the junior accountant preparing my return and she claimed that I I owed state income tax on one for a gain on a deal. The problem is I had passive losses from another K-1 in the same state to more than offset my passive gain.

She claimed I could not offset passive activity gain on one K-1 with passive activity losses from another K-1 investment. She claimed the only losses I could utilize to offset for the passive gain on that K-1 was any previous year losses on that same specific K-1 investment. That is news to me and flies in the face of why we bank and suspend passive losses to carry forward if needed to offset gains on that same deal in subsequent years if there are no passive gains to offset, or to offset passive gain on other K-1s in the same or subsequent years. Am I wrong here? The amount due isn't large, but I don't want to pay the tax if I don't actually owe it.  

I pushed back and wanted confirmation from the CPA who reviews the return for accuracy. I am awaiting feedback from the supervising CPA. 

Reaching out on here on who sponsors syndications with commercial NNN deals? Specifically, not limited to, NNN sale leaseback arrangements(single and multi tenant)? The only sponsor in this space I have dealt with is MAG CP.

Greetings all, I've been investing in syndications for nearly 3 years now but have hit an obstacle and trying to mitigate/manage it. 

Over the years I've built up a decent list of syndication sponsors who will take capital from a sophisticated investor like myself, particularly via  506(b) raise. It's been successful so far. However, a few of the sponsors I am invested with have since shifted to a 506(c) focus for their subsequent raises. Since I have yet to be accredited(close, but not yet there), I'm reaching out on here on who is continuing to raise via 506(b) and accepts capital from sophisticated investors. 

All, thank you for the guidance, clarification and context. 

I think I've asked this question before, but now that I am a few years in I would like to see what others with a more experienced background think. Things have become more nuanced. 

I'm a passive LP investor in multifamily and commercial NNN syndications in multiple states that have a state income tax, doing so since 2019, adding 3-4 net deals per year. If the K-1 is showing a loss, is it necessary to file a state return to preserve that loss to carry forward? Does it depend on the size of the loss relative to your future state income tax liability? The answers I've received in the past are very gray.

To add further complexity, what if I have a high paper loss one year but very little in future years? Do I need to continue filing state income tax returns in subsequent tax years to preserve it carrying forward or only for the year where that specific paper loss is recorded? 

I did receive some sticker shock for tax year 2020 as the tax preparation fees I paid to my CPA were 400% higher than in previous years, but my situation was admittedly more complex(many K-1s in multiple income tax states and overseas income from a W-2 utilizing FEIE). It stung even more when I had to pay $180 per state return just to preserve my paper loss carry forward(5 state returns in 2020, it will be higher in 2021, at least 7, not sure on paper losses yet). So I want to mentally prepare myself for this tax year 2021 and beyond on whether filing these state returns is really necessary all the time when I have a paper loss, or only when paper losses are high. Of course I know I have to always file if a K-1 is showing a profit.  

Any insight or information would be much appreciated. 

Could you educate me on what a dark bank is? Closed bank that will be re-positioned perhaps? 

Any CPA's out there looking for a new client, even if you're busy?(I'm patient and will need an extension anyway due to my K-1s) I have been trying to find a new CPA for my 2021 taxes and so far the only ones who have real estate specialties that I have been able to get a hold of are those who assist active investors who structure the deals as a GP or RE investing is their main source of income. So filing isn't the main source of their income, it's a more broad approach. I just want a CPA or EA who can prepare & file my taxes. 

I'm a passive LP investor who works overseas as a civilian defense contractor so I take full advantage of the FEIE(form 2555). I am invested in half a dozen states into private multifamily & commercial NNN syndication deals, so I'll have a handful of K-1 forms for 2021 needed to be filed in 6-7 different states to preserve my state income tax loss carry forwards. Is anyone interested? If so, please DM me. Thanks.

-Evan

P.S. If you can handle my real estate forms but are turned off by form 2555 or haven't dealt with it before, just an FYI it is a very basic form and I have all the information you need to complete it. 

If you invest in a syndication as an individual that is organized as an LLC, and you are a limited partner (LP) the stake you are taking in the LLC is already its' own measure of asset protection since you are limited from most forms of liability tied to the LLC. (hence the term 'limited' partner). Ensure to verify this verbiage limiting your liability is in your PPM prior to signing/funding.

Investing out of your own LLC into a syndication LLC, in addition to an additional layer of asset protection, can also provide some anonymity. If you're higher up the NW scale, this isn't a bad idea.

If you're just starting out, nothing wrong with investing as an individual LP into the syndication LLC, no need to use an entity to invest out of. You can get a personal liability umbrella rider from your auto insurer if your concern is liability.(at least that's how we can get personal liability umbrellas in Michigan).