Does an Escrow Deposit count as Real Estate for Sch I item 3c)?

[Guest crosseyedtester]

A client has put down a deposit for a unit in a development which is still far from being completed. Does "Escrow Deposit" count as real estate?

Thanks.

[Kirk Maldonado]

This is a bit of a stretch, but I seem to recall that the DOL said in an Information Letter (not an Advisory Opinion) to Carol Buckman about 10 years ago that a somewhat similiar arrangement would not be treated as a venture capital investment for purposes of the plan assets rules.

[JanetM]

In question 3c on the I, the point of measurement is the last day of the plan year. At that point, not in the future when you use exchange the asset for another, what is it and what is it worth.

I would deem in an interest or non interest bearing interest bearing cash deposit and not worry about question 3 until you take title or sign the lease in the plan's name.