All Forum Posts by: Nick C.

 I'm not saying they are a bad option as I'm sure many have had positive experiences.  My suggestion would be to seek out more information than just your advisor.  I looked through the PPM's for each but honestly, they have a lot of information to process.

People on this site have been very helpful if you ask and have a lot of knowledge and experience to share. I searched and read all the DST topics but should have asked more questions.

My advisor at the time seemed like he had access to a lot of different options and he was part of the Berthel Fisher network. Told me he could only offer DST's that had passed their review process. Thought it was safe but obviously I was wrong. Appreciate the offer to let me know if you hear anything.

@Jim Peret - Capital Square has been around for over 10 years while Inspired looks to be around 5 years old.  Capital Square still has their website up and seems to be more stable, though I'm no expert by any means.  Capital Square provides quarterly updates regarding the property and have been upfront about the struggles in multi family housing in the Atlanta area as there has been a lot of construction.  

Up until I got the email from Inspired, I was more worried about Capital Square.  With the aging population in our country, thought the senior living category would be stable.  

Thanks Denver.  Appreciate the response, obviously not what I was hoping for but not surprised.  With the increase of people needing senior care, I'm surprised they are struggling but a bad company will fail, even in a good business environment.

I've invested in three DST (2021). Two are through Capital Square and one with Inspired Healthcare Capital. A couple months ago, I received communication from Capital Square that they were lowering our distributions from 4.27% to 3.01% on one of the properties outside of Atlanta. Yesterday, I received a very short email from Inspired Healthcare that they were stopping distributions completely (6.0% previously).

Anyone else have experience with this and know what is likely to happen next?

Appreciate any insights you may have.

 Thank you Melanie.  I've certainly learned my lesson that not all are created equal and I need to ask more questions before choosing one.  

 Thanks Michael.  I will do that based on the feedback I've received here.  Wasn't sure it was worth pursuing.  Thanks again.

Thanks for the reply. My DST's are through Capital Square and they sent me a document that was titled Cost Segregation Studies & More and it was performed by MS Consultants, LLC. That's what I gave to my tax preparer. If I was supposed to give them something else, I don't know what it is. I did not make them aware but included it with all my other documents and would have thought that seeing I had rental income and mortgage expense that they would have noticed or questioned what the cost segregation study was. I also received a 1099-Misc and 1098 from Capital Square along with a document titled Important Tax information which included a letter calling out the Cost Segregation Study, an income statement and balance sheet.

My 2022 taxes were done by a different firm and this year, they "partnered" with another company who took over tax preparation.  In 2022, I sold quite a few stock options so my taxes that year were a lot higher than normal years and I was expecting 2023 to go back to what I consider normal.  When they didn't, I started looking at the forms and realized both years had depreciation missing.  

I have a feeling that the tax preparer took another shortcut and just used last years return to do this one so it was missed again. 

It looks like the one years worth of depreciation and mortgage interest are enough to offset the rental income so will I be stuck with the carry forward and not able to use it if the DST goes full cycle?

Again, thanks for your help and explanation.  

Hope I can explain this well enough. Background....I invested in two DST's in Jan of 2022. When I received my 2023 taxes back from my tax preparer, I noticed that they included income from the DST's but did not include any depreciation. I then went back and reviewed my 2022 taxes and they were the same (included income but left out depreciation). I had given them the cost segregation studies for both properties that were provided to me but they didn't use them. When I brought this up, they said they could amend my taxes. I picked them up yesterday and they amended 2023 but not 2022. When I asked why, I think I understood them to say they included the depreciation for both years on 2023 and there is a carry forward of losses ($13k).

Is this the right way or best way to do this? My concern is at some point the DST's will go full cycle and I'll continue to have carry forward losses that I won't be able to use depending on the decisions I make at that time. My other concern is that I'd rather have them amend 2022 as well and have the money now. The amended 2023 taxes resulted in a refund of $7k.

Appreciate any insight on this.

Thanks Zach.  I called and asked but am waiting on a reply.  I'll have to look through my return to find Form 4562.  Didn't notice that one initially.