Tax implications of REITs

Jeanne Tieken on

What are the implications for Bivio tax preparation for the purchase of REITS?

Thank you.

Joe Farrell on

The short answer is don't. Go to bivio .com, type REIT into the search box, trigger go and read the hundreds of previous responses.

Sent from my iPhone

> On Sep 3, 2016, at 7:23 AM, Jeanne Tieken <jeannetieken@gmail.com> wrote:
>
> What are the implications for Bivio tax preparation for the purchase of REITS?
>
> Thank you.

Laurie Frederiksen on

Thank you Joe for a good answer to Jeannes question.

You can also find a summary of the issues with REIT's at this link which you can always find on our help page:

REITs

Laurie Frederiksen
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On Sat, Sep 3, 2016 at 8:06 AM, Joe Farrell <cjfarrell46@icloud.com> wrote:

The short answer is don't. Go to bivio .com, type REIT into the search box, trigger go and read the hundreds of previous responses.

Sent from my iPhone

> On Sep 3, 2016, at 7:23 AM, Jeanne Tieken <jeannetieken@gmail.com> wrote:
>
> What are the implications for Bivio tax preparation for the purchase of REITS?
>
> Thank you.

Linda Wiltse on

As a tax preparer I can tell you that while some REITS may have fairly simple reporting, most are more complex. The K-1's often come very late which will delay processing the tax return for the club (which will be due 3/15/17 - a month earlier than in the past). The club would need to file for an extension. Bivio's program is not sophisticated enough to handle many complex issues, including issues relating to states.

Tell members if they want to invest in REITS on their own, fine, but keep them and other partnerships out of the club. There are mutual funds and ETF's that contain REITS. These simplify the tax reporting, although you could get corrected reporting statements later in March from the broker.

Linda Wiltse

Pointe Players

From: club_cafe@bivio.com [mailto:club_cafe@bivio.com] On Behalf Of Jeanne Tieken
Sent: Saturday, September 03, 2016 8:23 AM
To: The Club Cafe
Subject: [club_cafe] Tax implications of REITs

What are the implications for Bivio tax preparation for the purchase of REITS?

Thank you.

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Laurie Frederiksen on

Just to clarify, REIT's are different from MLP's which are the investments you get a K-1 from.

You can handle the issues REIT's bring with them in bivio if you really want to, but they are manual adjustments you need to make after you get your 1099 form. Many treasurers find them very complex and do not want to deal with them. That's why we recommend you just avoid them as investments.

The work you need to do is described in the link I sent earlier.

It is important to know that REIT ETF's bring the same issues with them that REIT's do.

MLP's are a much bigger problem than REIT's. As Linda mentioned, they can bring many and varied tax issues you need to address that cannot be handled by bivio. If you invest in them you need to work with an outside accountant to get your club taxes prepared correctly.

On Sat, Sep 3, 2016 at 2:15 PM, Linda Wiltse <wiltse@optonline.net> wrote:

As a tax preparer I can tell you that while some REITS may have fairly simple reporting, most are more complex. The K-1's often come very late which will delay processing the tax return for the club (which will be due 3/15/17 - a month earlier than in the past). The club would need to file for an extension. Bivio's program is not sophisticated enough to handle many complex issues, including issues relating to states.
Tell members if they want to invest in REITS on their own, fine, but keep them and other partnerships out of the club. There are mutual funds and ETF's that contain REITS. These simplify the tax reporting, although you could get corrected reporting statements later in March from the broker.
Linda Wiltse
Pointe Players

From: club_cafe@bivio.com [mailto:club_cafe@bivio.com] On Behalf Of Jeanne Tieken
Sent: Saturday, September 03, 2016 8:23 AM
To: The Club Cafe
Subject: [club_cafe] Tax implications of REITs

What are the implications for Bivio tax preparation for the purchase of REITS?

Thank you.

This email has been checked for viruses by Avast antivirus software.
www.avast.com

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