Our series of diversified private funds offer two ways to participate. The MLG Private Funds and the MLG Dividend Funds will invest side-by-side in each investment. Each have their respective attributes and have the same overall pre-tax investment objectives.
The private fund is generally structured for investors seeking capital gain and net rental income (loss). The dividend fund was formed for retirement, foundation or endowment investors seeking real estate investments without the complication of UBTI tax, and targets capital gain/ordinary REIT dividends as income. Cash investors can also participate into the dividend fund but may want to work with their CPA on the tax efficiencies or implications that may arise.
Some questions to work with your CPA on:
- Do you have other passive sources of income or losses? An investment in the private fund may produce a taxable passive loss through depreciation practices in the first year of investment which can be used to offset other forms of passive income. The dividend fund does not produce a passive loss for investors.
- Do you currently file taxes in multiple states each year? An investment into the private fund can produce K1s for ~10-15 states, one for each state the fund holds an asset in. The dividend fund only produced one state level K-1.
- Would my portfolio be positively impacted by adding real estate to the mix?
- How will multi-state tax filings impact my portfolio?