What tax information do investors receive?

HoneyBricks receives a K1 for the investment manager, which is then allocated pro-rata to each investor.

Investments on the HoneyBricks platform are through security tokens that legally represent a membership interest in a limited liability company (LLC) that holds the underlying real estate investment, and is treated as a partnership for US tax purposes.

A separate HoneyBricks entity is the manager of the LLC and covers all corporate, federal and state taxes for the investment, with individual investors responsible for their individual taxes.

HoneyBricks automatically generates K-1 forms and sends them annually to: 

  1. The registered email on your HoneyBricks account 
  2. The IRS as part of our regulatory requirements.

Individual K-1s are required to be sent for every LLC, and subsequently every investment on the platform. You will receive an individual K-1 form for each token that you invested in during the tax year.

To facilitate individual tax filings, HoneyBricks will provide:

  1. Schedule K1s for each investment on the platform
  2. A Tax Summary that aggregates all of an investors tax information

You’ll be notified by email once available, and the documents will also be added to your documents in your account settings.