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Started by Sam, November 07, 2018, 11:29:29 AM
Quote from: stingray on February 12, 2019, 04:43:43 AMJust a heads up: RealtyShares' contractors accidentally reported some interest payments as Nonemployee Compensation on Form 1099-MISC, rather than interest on Form 1099-INT. Why does this matter? Because you could be assessed 15.3% self-employment tax because of the mistake. I am not sure how widespread the problem is. RealtyShares states that they are correcting it. Their email is copied below. Check your records and make sure you use the corrected forms, when you receive them. And document everything in case you are audited.***Dear Investor,During an audit of the 1099 Tax documents that were sent on January 31st, it came to our attention that the incorrect form was used to report interest for your Pref Equity investment(s) with Realty Shares. You may have received a form 1099-MISC with an amount listed in box 7, for "Nonemployee compensation".We are correcting this error and: - You will receive a corrected Form 1099 MISC, showing a zero amount in Box 7. - You will also receive the correct Form 1099 INT showing the interest income. Both of these forms will be mailed this week. The interest amount shown on the Form 1099 INT will be identical to the amount listed in box 7 on the erroneously issued Form 1099 MISC. We apologize for any inconvenience,
Quote from: John_PVF on February 23, 2019, 12:23:17 PMI also had a few deposits hit my account yesterday but no updates on the website. No way to identify what deals they were from, let alone if the amounts were correct. One of them was for less than $10. Has anyone heard any updates on the sale process? A number of folks thought we'd have some clarity by now.
Quote from: Taxman on February 23, 2019, 01:40:40 PMQuote from: John_PVF on February 23, 2019, 12:23:17 PMI also had a few deposits hit my account yesterday but no updates on the website. No way to identify what deals they were from, let alone if the amounts were correct. One of them was for less than $10. Has anyone heard any updates on the sale process? A number of folks thought we'd have some clarity by now. I think this issue of a portfolio sale has the potential to place RealtyShares somewhat at odds with the platform investor population, as the company's board will attempt to maximize the value to satisfy the VC's and others that invested directly in RS, which at a minimum will likely lengthen the amount of time required to strike a deal, assuming there remains a deal to be struck. In turn, the longer it takes to work through a viable deal, the more likely it becomes that platform investors realize "hope" is not a strategy and actions including litigation and/or independent probes initiated through state or federal authorities may be undertaken, especially given the crappy way RS has handled this from a PR perspective. This of course could render RS toxic and submarine any potential deals. If there is a deal to be made, RS needs to also consider the longer term value to the platform investor as well, in terms of asset management and other functions critical to platform investors. I have a substantial amount of money invested through the platform myself and it has been very hard to sit back and try to let things play out given the lack of communication, ongoing payment interface issues, delinquent or nonexistent reporting and payouts, concern that sponsors may take advantage of the situation the longer it persists, etc. I can only imagine the carnage of tax season and the K-1 process. Whoever is left in senior management at RS should well realize that it is now nearly four months since their announced demise and they need to get this situation handled ASAP for everyone's sake and not try to squeeze every penny out of any potential deals. This isn't a fine wine and it's not going to get better with time. A little communication along the way wouldn't hurt either.
Quote from: Taxman on February 15, 2019, 11:41:44 AMQuote from: Followthesunand72 on February 15, 2019, 09:19:39 AMI had 2 equity deals that paid off in full since RS closed for new business.Westheimer Oaks paid on time, full principal and earnings.Madison at Black Mountain paid a year ahead of schedule, full principal and earnings.Seems to me that there is too much focus on the "what ifs", rather than the positives.Have you actually received the funds from Madison at Black Mountain? I ask because I have a substantial investment in that property and although I have received notifications that the deal closed, I have yet to receive actual payoff for that investment, as well as periodic distributions from several other investments that have paid monthly distributions regularly when RS was fully operational.
Quote from: Followthesunand72 on February 15, 2019, 09:19:39 AMI had 2 equity deals that paid off in full since RS closed for new business.Westheimer Oaks paid on time, full principal and earnings.Madison at Black Mountain paid a year ahead of schedule, full principal and earnings.Seems to me that there is too much focus on the "what ifs", rather than the positives.
Quote from: ramesh on February 22, 2019, 11:05:52 AMI received two (out of an expected eight) bank deposits from "RS Servicing LLC" yesterday, but no entries on the website dashboard. I can only guess the deal they were distributed from. What a mess!