Video: An Introduction to the Tax Tracker

Passive real estate investments carry a unique set of tax filing nuances. EquityMultiple’s Product Team is excited to introduce our Tax Tracker, designed to aid EquityMultiple investors in monitoring the progress of tax document preparation and delivery. More information regarding taxes on passive investments can be found here.

Activity

Our operations team is working diligently to expedite the processing of your tax documents. Status updates will be provided throughout. You can expect to see the following statuses for each of your K-1s:Our team is compiling and organizing investor-level information. Once completed, we will securely provide this information to our accounting firm to ensure that your tax document is prepared correctly.We have requested entity-level tax documents from the Sponsor; the entity-level tax documents are required for our accountants to prepare investor-level documents. Over the next few weeks, our team will continuously follow up with the Sponsor on the status of tax document preparation and the estimated timing of delivery. We will update the Tax Tracker and provide an update when we receive entity-level tax documents from the Sponsor. Delays from the Sponsor are not uncommon in the real estate industry due to complex structuring and financial reporting. If we believe there may be a delay in the delivery of your tax documents, we will notify you as soon as practical to allow you to plan accordingly. We will provide a definitive status update no later than April 1st, 2020.Our team received the entity-level tax documents from the Sponsor for this investment and we are conducting a preliminary review to verify accuracy. Once the review is complete, our accountants will begin preparing investor-level tax documents.Our team completed the review of the entity-level tax documents and securely provided them to our accountants to prepare investor-level tax documents. Once our accountants have completed their preparation and review of investor-level tax documents, they will be released to EquityMultiple for a final review before being uploaded to the My Documents page for download.

We have completed our review of your tax document for this investment and it is now available for download in the My Documents page. 

Possible Delays

Due to the complex nature of real estate tax reporting, delays are common and active real estate investors often file extensions. Should any of your tax documents be delayed, you can expect to see the following statuses displayed. Please consult with your tax advisor to determine whether you will be best served by filing an extension.

Tax Document Under Review

We have discovered an error in the entity-level tax documents provided by the Sponsor. We are working with the Sponsor and our accountants to correct the issue. Our Asset Management team will provide an update on the timing of your tax documents when available.

No Estimate Anticipated

Due to the late delivery of entity-level tax documents and financials from the Sponsor, we are not able to ensure delivery of your tax documents or an estimate before April 15th. Please consult with your tax advisor and consider filing an extension. Our Asset Management team will provide an update on the timing of your tax documents when available. Learn more about filing an extension with this FAQ.

Estimate Anticipated

Due to a delay in receiving entity-level tax documents from the Sponsor, we can not ensure delivery of your tax documents before April 15th. We anticipate providing an estimate no later than April 13th on the My Documents page. Please consult your tax advisor and consider filing an extension. Learn more about filing an extension with this FAQ.

Video Transcript

Hi, I’m David from EquityMultiple.

It’s my pleasure to guide you through this introduction to our Tax Tracker, a feature our Product Team is excited to present to EquityMultiple investors. 

Tax season can cause plenty of headaches. Being aware of deadlines and the status of documents is key to filing in a timely manner and avoiding late fees. We built this tool so investors can easily check the status and the timing of tax documents for each of your EquityMultiple investments and to help set timing expectations as you plan to file taxes in advance of tax day. 

The Tax Tracker Page is available to users expecting to receive 2019 Tax documents. It’s accessible here, through the main navigation menu at the top of the screen. 

On the tax tracker page, investors will find a summary of the tax documents they should expect to receive for the 2019 tax year. For most EquityMultiple investments, this document will be a Schedule K-1.

As you can see, the Tax Summary provides a list of each offering this investor is participating in, along with the document type, the status of the document and the recent activity pertaining to each. You can filter this list by status using the dropdown menu. For instance, if I want to view only the offerings with available tax documents, I can click on “Filter By Status” and select “Available”.  Now, if I want to return to all of my offerings, I can again click on “Filter By Status” and select “All”.

Additionally, we can order our list of offerings by any of the column headers. For instance, we can sort our offerings alphabetically by clicking the “Offering” header, or we can sort the offerings alphanumerically by document type, status, or activity.

Should delivery of any of your documents be delayed, you’ll see this status reflected in-line with the offering. Both the activity and the status fields will be updated regularly as we work with sponsors and our partner accounting firm to prepare and validate your tax documents. 

Note the link that reads “View Activity to learn more” in the Activity column, in line with each offering. This link takes us to the most recent tax messages on your “My Activity” page. These posts provide further detail on the status and timing of tax document preparation and delivery. The purple label at the bottom right of the post indicates that the post pertains specifically to tax documents. 

We hope you find the Tax Tracker tool useful as you plan to file taxes. We welcome any feedback you have, either via the chat window at the bottom right-hand corner of your screen or via our email address: feedback@equitymultiplestaging.com