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Tax, SDIRAs & Cost Segregation

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Nicholas Lohr
Pro Member
  • Investor
  • San Francisco, CA
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Is only construction "active" enough to satisfy securities law ?

Nicholas Lohr
Pro Member
  • Investor
  • San Francisco, CA
Posted Mar 10 2020, 17:15

If an investor participates in the rehab of a property but not in the management is that considered active?

Per the Howey Test; I know all the investors have to be active in order to not have to register the investment with the SEC. 

Does construction and then nothing thereafter count as active enough to satisfy?