How do you value MF syndication investments as a passive investor

Question

I'm filling out my 2019 EZ5500 form for my solo401k. I invested as a limited partner in a MF syndication that hasn't started dispersing any return. How do I put a value on that investment?

Taylor L. · Answer

The sponsor should have sent you a K-1 with the information you need. If you have not received a K-1, contact them and ask for it post haste, it is very, very late at this point. If you do need a separate FMV, you can ask the sponsor for that as well.

AJ Shepard · Answer

@Alecia Bolton it probably doesn’t hurt to ask the sponsor for clarity. Generally we try to get our K-1s out by the end of February if at all possible.

Alecia Bolton · Answer

@Taylor L.

Thanks for your response! I didn't know they sent out a K-1.

I made the investment on 12/27 and they closed in 2020, so I expect I'll get a K-1 next year.

How do you value MF syndication investments as a passive investor

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