Since were are in tax season...
This seems better than LC in that it is a 1099-DIV vs 1099-OID (ordinary income tax rate).
https://fundrise.com/education/faq#item406Investors in each eREIT™ will receive a 1099-DIV at the end of each year.
https://www.irs.gov/publications/p17/ch08.htmlQualified Dividends
Qualified dividends are the ordinary dividends subject to the same 0%, 15%, or 20% maximum tax rate that applies to net capital gain. They should be shown in box 1b of the Form 1099-DIV you receive.
The maximum rate of tax on qualified dividends is the following.
0% on any amount that otherwise would be taxed at a 10% or 15% rate.
15% on any amount that otherwise would be taxed at rates greater than 15% but less than 39.6%.
20% on any amount that otherwise would be taxed at a 39.6% rate.
[update]
Looks like these are treated at ordinary income so no better in that regard.
https://fundrise.com/education/faq#item512Will my dividends be qualified?
A qualified dividend is a type of dividend which may be subject to preferential tax rates, which are usually lower than regular income tax rates. Non-qualified, ordinary dividends are taxed at the normal rate based on the individual’s ordinary income. Based on the historical operations of the eREITs™ and how we expect them to operate in the future,
we do not expect most dividends that are issued by the eREITs™will be qualified. However, to the extent that the eREITs™ do pay qualified dividends, they will report them as such in Box 1B.
https://www.irs.gov/publications/p17/ch08.htmlOrdinary Dividends
Ordinary (taxable) dividends are the most common type of distribution from a corporation or a mutual fund. They are paid out of earnings and profits and are
ordinary income to you.
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