Understanding Taxes on Realbricks: A Clear Guide for Investors
This overview explains how taxes are handled within the Realbricks investment structure so you can feel informed and confident as an investor. It is meant to provide clarity—not tax advice—and outlines what you can generally expect as a Realbricks investor.
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Understanding Taxes on Realbricks
Investing in real estate shouldn’t require navigating complicated tax structures or dealing with complex partnership filings. Realbricks was built to give everyday investors access to high-quality real estate opportunities while keeping the tax experience simple, transparent, and investor-friendly.
This guide explains exactly how taxes work when you invest on the Realbricks platform — from receiving dividends to selling shares, and everything in between.
1. Why Realbricks Uses a Simple, Investor-Friendly Tax Structure
All Realbricks investments are held under Terra Mint Group Corp, which files taxes as a C-corporation.
The property-holding entity, Neptune REM, LLC, is treated as a disregarded entity, meaning all of its activity rolls up to the C-corp level.
What this means for you:
- No K-1 forms
- No partnership filings
- No complex pass-through reporting
Instead, investors receive simple, familiar tax forms — just like they would when investing in a publicly traded stock.
2. What Tax Forms Investors Receive
Realbricks provides the following tax forms based on activity:
1099-DIV
Issued to all investors who receive dividend income during the year.
1099-B
Issued when an investor:
- Sells shares on the peer-to-peer marketplace, or
- Receives gains from a property liquidation (treated as share appreciation)
1099-MISC
Issued only if:
- An investor receives $600 or more in bonus-share value during a calendar year.
Most investors will receive a 1099-DIV and/or 1099-B.
3. Dividends From Realbricks Are “Qualified Dividends”
Because Realbricks operates under a U.S. C-corporation, the dividends you receive are Qualified Dividends (Box 1b on the 1099-DIV).
Why this matters
Qualified dividends are taxed at long-term capital gains rates, not ordinary income rates.
- Ordinary income tax rates can reach 37%
- Qualified dividend rates are 0%, 15%, or 20%
For most investors, this results in significantly lower taxes compared to traditional rental income.
4. How Dividends Are Generated and Taxed
Dividends are paid quarterly, sourced from rental income on tenant-occupied properties.
Process:
- The property collects rental income
- Terra Mint pays expenses (management, insurance, reserves)
- Remaining income becomes available for dividends
- Investors report dividends as qualified dividends
This structure allows investors to earn passive income without dealing with landlord taxation.
5. Depreciation Benefits — Without the Complexity of K-1s
Realbricks handles depreciation internally:
- Neptune REM, LLC claims depreciation at the company level
- This reduces taxable income for the corporation
- More cash remains available to distribute to investors as dividends
Important
Depreciation is not passed through to investors and does not appear on 1099 forms.
Investors receive the benefit — without the paperwork.
6. Taxes When You Sell Your Shares
If you sell shares on the peer-to-peer marketplace:
- Profit = capital gain
- Holding period determines tax rate
- ≤12 months → short-term gains
- 12 months → long-term gains
You’ll receive a 1099-B, and Realbricks tracks your cost basis automatically.
7. Taxes When a Property Is Sold (Liquidation Event)
If Realbricks sells a property, investors receive their share of the sale proceeds in one payout.
IRS classification:
Return of Capital
- Equal to your original investment (cost basis)
- Not taxable
Capital Gains
- Any amount above your cost basis
- Taxed as long-term capital gains if held > 1 year
Tax Form Issued
Liquidation proceeds are reported on a 1099-B, because they are treated as capital gains on appreciated shares.
(Investors do not receive a 1099-DIV for liquidation events.)
8. Do Investors Owe Taxes in the Property’s State?
No.
Investors owe state income taxes only in their state of residence, not the state where the property is located.
Realbricks handles all property-related state taxes internally.
9. Summary — The Realbricks Tax Advantage
✔ No K-1 forms
✔ Simple 1099-DIV and 1099-B reporting
✔ Dividends taxed at favorable qualified rates
✔ Depreciation benefits passed through indirectly
✔ Clean capital gains treatment
✔ State-tax simplicity
✔ Automatic cost-basis tracking
Real estate investing doesn’t have to be complicated — and neither should taxes.
Sign up on Realbricks today and start exploring long-term real estate opportunities with as little as $100.