Are there beneficial tax treatments by investing in PRIMARQ transactions?
PRIMARQ transactions may enjoy the benefits of investment property including participating in like-kind exchanges. Currently, PRIMARQ is pursuing a revenue ruling with the IRS to establish the position of PRIMARQ investments being eligible for such tax deferred exchanges. However, there is no assurance that we will be successful in such position. We advise you to consult with your legal and tax advisors on such treatment. • How will my investment be treated on my tax return? Since the home owner lives in the entire property, but only owns part, the IRS requires the occupier to rent your investor interest in the property. The home owner pays a small portion of the expenses earmarked as rent into an investor account. Then they pay an equal amount of property expenses out of this investor account. The net result is that you have some rental income offset by deductible property expenses, thus a zero net cash flow. This enables you to claim the property as investment property and receive in
