All Forum Posts by: Mukesh Yadav
Mukesh Yadav has started 7 posts and replied 26 times.
Post: Loss from a Syndication investment
- San Ramon, CA
- Posts 26
- Votes 5
Quote from @Mukesh Yadav:
Quote from @Account Closed:
*Not tax advice*
If your involvement in the syndication investment is considered passive and you are not a real estate professional, you generally cannot offset W-2 income with passive losses. Passive losses are typically carried forward to future years and used to offset future passive income or gains from the same activity or a similar one.
However, there is an exception under the tax law for "passive activity loss limitations" when an investment is disposed of in a complete disposition. This means that if you dispose of your entire interest in the activity in a taxable transaction (e.g., you sell your investment), you may be able to use any remaining suspended passive losses to offset other forms of income, including non-passive income like W-2 income.
It's important to note that tax laws and regulations can be complex, and the treatment of passive losses can vary based on individual circumstances and changes in tax laws. To get accurate and up-to-date advice tailored to your situation, it's highly recommended that you consult with a qualified tax professional who can review the specific details of your syndication investment, your financial situation, and the applicable tax rules to provide accurate guidance.
Thank you
Thank you Kislay
Post: Loss from a Syndication investment
- San Ramon, CA
- Posts 26
- Votes 5
Quote from @Michael Plaks:
Not enough details for a useful answer. The pass-through K1 losses that were previously locked due to the passive activity loss (PAL) rules do get unlocked in the year the syndication is dissolved, and there is a K1 marked "final."
In addition, there is a separate issue if you lost your principal investment. This gets complicated and is not a DIY project.
And, depending on the specifics, various other limitations can come into play.
Thank you Michael
Post: Loss from a Syndication investment
- San Ramon, CA
- Posts 26
- Votes 5
Quote from @Account Closed:
*Not tax advice*
If your involvement in the syndication investment is considered passive and you are not a real estate professional, you generally cannot offset W-2 income with passive losses. Passive losses are typically carried forward to future years and used to offset future passive income or gains from the same activity or a similar one.
However, there is an exception under the tax law for "passive activity loss limitations" when an investment is disposed of in a complete disposition. This means that if you dispose of your entire interest in the activity in a taxable transaction (e.g., you sell your investment), you may be able to use any remaining suspended passive losses to offset other forms of income, including non-passive income like W-2 income.
It's important to note that tax laws and regulations can be complex, and the treatment of passive losses can vary based on individual circumstances and changes in tax laws. To get accurate and up-to-date advice tailored to your situation, it's highly recommended that you consult with a qualified tax professional who can review the specific details of your syndication investment, your financial situation, and the applicable tax rules to provide accurate guidance.
Thank you
Post: Loss from a Syndication investment
- San Ramon, CA
- Posts 26
- Votes 5
Quote from @Ashish Acharya:
The investment amount might be capital in nature and will have some limitations.
Thank you Ashish!
Post: Loss from a Syndication investment
- San Ramon, CA
- Posts 26
- Votes 5
Hi All,
I have a question for those of that are tax savvy. If you have a loss from syndication investment ( the entire project went bust) can you use that loss (from the final K-1) to offset your regular W-2 income ?
We all know that generally passive activity losses can only be used to offset passive activity income, BUT, if if the project/investment is completely closed out and final K-1 generated with a loss, in that case can that loss be used to offset regular W-2 income ?
Hope I have articulated the question properly...
Mukesh
Post: RE Attorney for reviewing a PPM for a Pvt Lending project
- San Ramon, CA
- Posts 26
- Votes 5
@Jerel Ehlert, can I message you one one to explore the possibility of you providing me some on this topic?
Post: RE Attorney for reviewing a PPM for a Pvt Lending project
- San Ramon, CA
- Posts 26
- Votes 5
Originally posted by @Jerel Ehlert:
Sorry, but interpreting legal instruments is EXACTLY the time to get a lawyer involved.
If the sponsor drafted something they got off the internet, you want to get a lawyer to look at it. If you don't fully understand what the investment is, you want to get a lawyer to look at it. Before the transaction goes sideways to see what your options are going in, you want to get a lawyer to look at it.
Sure, the investor is going to pay a bit to have a lawyer look at it, but it is often better to pay a bit now and pass, than invest and pay a lot later.
Post: RE Attorney for reviewing a PPM for a Pvt Lending project
- San Ramon, CA
- Posts 26
- Votes 5
Thanks @Jay Hinrichs, @Brian Burke, @Ivan Barratt, @Bob Floss II, @Jerel Ehlert and @Amy Wan for your perspectives and insights. I am a newbie investor and all your responses are very educative open my mind to various elements that need to be examined.
I have been looking at investing in some syndication deals (have already invested in a two so far) but every time I look at a PPM and the Business Summary I feel like getting an expert to vet some of the legal items on the one hand and the attractiveness of the deal from a financial standpoint on the other hand would be very helpful and wouldn't mind spending some money in fees for that service....So if you all can recommend some service/individuals who can do this for a fee I would really appreciate it....Thanks
Post: RE Attorney for reviewing a PPM for a Pvt Lending project
- San Ramon, CA
- Posts 26
- Votes 5
Hi ,
I am looking for some references for a RE Attorney who can review a PPM for a Pvt Lending opportunity I am looking to invest in. I'm a California resident and the project/firm I am looking to invest in are in Texas...Any help would be greatly appreciated. Thanks
Mukesh
Post: Looking for feedback on Self-Directed IRA custodians
- San Ramon, CA
- Posts 26
- Votes 5
@Mark Nolan, thanks for sending the comparison between the two. I would like set up some time with you to go over a few questions I have to be able to figure out what is the best option for my situation. I currently have a 401K plan with Fidelity and so does my wife. Please let me know if you have some time in the next few days. Thanks.
Mukesh