All Forum Posts by: Sam Dal

Guys

This is sort of a continued post from the thread below

https://www.biggerpockets.com/...

I have a few k1's with syndicate and ATM funds which have invested in many states (12 for me). I spoke to my local CPA and he said technically, I should file my passive carry-over losses in every state. However, it's going to be $70 for each state and adding that up for 5 years it's quite a bit of money.

He also said practically and based on his 15 year history as a CPA, he's not seen states come after the 200 or so investors for a single property sale as it's not easy for them to enforce this. Is that accurate? If they come after you, he said most states will agree to take and reconcile the passive carry-over losses even though I didn't file them when needed. Over 5 years, it's going to cost me roughly $4000 in additional tax filing fees.

Thanks

Before running out of time with her, my CPA suggested only filing returns in those states where I have a $1000 or greater loss. I wonder why she set the bar that high. I guess it's probably due to states possibly having a 'minimum income' rule when filing returns so if I get $1000 loss over 5 years, that's $5000 in total and my depreciation may not be that great when the property is sold for this state

Folks

Not sure if I'm allowed to mention specific fund names here but I'm invested in a popular ATM fund run out of a company in PA. Their K1 shows my ownership in about 12 states with losses ranging from $12 - $1000. Since ATM assets really don't have much value left at fund closing or disposition time, I would likely not have any profits on the last K1. Hence, is it needed to really file those 12 state returns? I understand filing for states where I'm a passive investor in a multi-family property since I do want to carry-over losses when the property sells but don't understand if I need to do that for ATM

Thanks

Guys - anybody care to comment on the above? Also, what would most CPA's charge for an extra 15 out of state filings with only a single K1 if I have to go down this route

guys - I've been investing in ATM's as a LP and turns out the ATM"s are in 10 states so I'll have to technically file in 10 states. However, as you know with the ATM business, the sponsor is simply depreciating aggressively and there won't be any depreciation recapture since there's no value in the ATM at the end of its life. Hence, do I need to really file non-resident returns in all the various states? Thanks

Folks

How do most of you track your passive RE investments and keep a tab if the investments are tracking to their expected distributions? Is it excel and would you be comfortable taking out the specifics but keeping the formulas for me to rinse & repeat? Ideally I would like something where you can list out the expected monthly or quarterly distribution and then every time an ETF comes through, I go enter the cell next to month/quarter and then it'll automatically add up everything to show how I'm performing on an annual basis. I can create this myself but figured somebody already has done a good job with it for tracking multiple and a growing portfolio of passive RE investments

Thanks

Folks - for those of you making investments in passive real estate (syndicates), I'm guessing the living will take care of any distributions, etc if one were to pass away. Correct?

Or are you folks simply investing with your spouse's name on all investments?

Thanks

guys - i'm a passive real estate investor (invest in apartment syndicates) that are non-recourse and my only liability is to the extent of my investment. That being said, I am considering forming a Wyoming LLC for basic asset protection like CD's and other brokerage based investments. The reason behind this is I'm seeing an increase of frivolous law suits in my city. In addition, I also live in a city in the northeast where it's almost impossible to find licensed and bonded labor to work in your home - almost everybody is unlicensed and I can't come to the grips of what happens if someone falls off my roof

For these reasons alone, is it worthwhile to place non-RE and RE investments under a single LLC out of Wyoming? The costs don't see that big and it's usually a few hundred to set up and under $200 to maintain with the many agencies available to take your mail and be your registered agent. I've obviously done some research but can't come to a conclusion and looking for some unbiased opinion here. I found a good article on this topic too

https://www.biggerpockets.com/blog/2010-09-01-can-nevada-or-wyoming-protect-your-real-estate-investments-in-another-state-draft-for-review


Thanks

I agree and that's a good high level answer. However, can somebody provide 1-2 specific reasons why real estate should be considered if you completely pull out the depreciation & tax advantages and you assume the returns are going to be 7-8% or very similar to equity/stock market over the next 5 years

thanks

Folks

I have been doing some reading on this topic. I am a passive investor and typically invest directly in apartment syndicates or funds. Given returns are fairly muted now and historically the stock market has returned approximately 7% annually, does it make sense moving from a regular 401k to a my solo 401k and investing that money in real estate even though there are no tax benefits to be had. I see some folks doing it but don't understand why since a 401k is completely tax-free growth in the first place

thanks

Thx