Understanding the Tax Treatment of Real Estate Crowdfunding

As tax day has arrived it is important for investors to understand that real estate crowdfunding has specific tax treatment; investments into syndications are considered passive and there are two types of passive activities, rental activities and business; understanding how your passive activities tally up into income or losses will determine how you will file and if you will need to carry over to future years; another benefit to crowdfunding syndications is favorable long term capital gains tax rates if a property is acquired and held for longer than a year. Source

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