› Forums › Solo 401k › Solo 401k – 5500-EZ › 5500-EZ Questionnaire
-
5500-EZ Questionnaire
Posted by Jon P. on July 7, 2022 at 2:39 pmI am working on the questionnaire for the 5500-EZ. Question 11 of 15 asks about non-recourse debt.
Within our solo 401k plan we have invested in three multi family real estate syndications as limited partners. I received the annual K-1 from each syndication. Here is an example from section K Partner’s share of liabilities of part 1 from one of them:
Nonrecourse (ending balance) $788
Qualified nonrecourse financing (ending balance) $89,849
On the 5500-EZ questionnaire, do we include the nonrecourse debt from these syndications that we have invested in as limited partners?
Presuming the answer to the above question is yes, do I include the total of the two amounts from my example above ($90,637) for the year end balance on the questionnaire? Or do I just include one of the individual amounts?
Jon P. replied 1 year, 8 months ago 2 Members · 3 Posts -
2 Replies
-
-
Jon P.
July 7, 2022 at 2:39 pmI am working on the questionnaire for the 5500-EZ. Question 11 of 15 asks about non-recourse debt.
Within our solo 401k plan we have invested in three multi family real estate syndications as limited partners. I received the annual K-1 from each syndication. Here is an example from section K Partner’s share of liabilities of part 1 from one of them:
Nonrecourse (ending balance) $788
Qualified nonrecourse financing (ending balance) $89,849
On the 5500-EZ questionnaire, do we include the nonrecourse debt from these syndications that we have invested in as limited partners?
Presuming the answer to the above question is yes, do I include the total of the two amounts from my example above ($90,637) for the year end balance on the questionnaire? Or do I just include one of the individual amounts?
Jon P. -
George Blower
July 8, 2022 at 9:33 amThanks for your question!
The Form 5500-EZ instructions require that plan liabilities be listed including acquisition indebtedness. For example, if the plan acquired a real estate investment property using a non-recourse loan such that the plan is liable for the loan such indebted would be listed on Form 5500-EZ.
In the case of an investment in a real estate syndication that may be subject to nonrecourse financing but where the plan is not liable for such debt, the nonrecourse financing does not need to be listed on Form 5500-EZ such that this can be disregarded when completing the Form 5500-EZ questionnaire.
Related Discussions
Related Blog Posts
- The ROBS 401k webinar this…3 years ago
- 1. Find rental properties in…3 years ago