Making Sense of Real Estate Crowdfunding Tax Issues…
As an experienced CPA firm, we understand the issues relating to real estate syndication. However, lately we have seen a shift. The traditional syndication model is turning to crowdfunding. With real estate crowdfunding growing at a significant pace, there are complex tax issues that need to be considered.
That is why we offer a FREE consultation for syndicators and sponsors along with owners of real estate crowdfunding platforms. Our firm offers specialized industry knowledge and expertise. We know that crowdfunding platforms face an endless array of legal and compliance challenges. But we are here to help you sort out the tax issues.
We can help you with the following:
- Understanding state taxation issues and state taxation strategies;
- Dealing with foreign investors and providing them with compliance assistance;
- LLC taxation tips and “conduit” pass-through strategies;
- Understanding federal quarterly and annual filing and compliance requirements;
- Coordination and timing of filing requirements with the sponsor;
- Understanding the taxation differences between debt and equity deals;
- Facilitation of the tax coordination process and distribution of state and federal K1s;
- Coordination with legal council for an efficient tax process; and
- Consulting on streamlining the tax process for crowdfunding investors.
As a sponsor or owner of a real estate crowdfunding platform, make sure that you understand the tax issues you are facing. Tax season will be here before you know it. You need to make sure that you are coordinating tax compliance issues with sponsors and also communicating timing of K1s and other tax compliance issues with investors. Don’t lose sight of the tax issues and make sure that you get your questions answered.