Similar to a 1099, a K-1 form is an accounting of the tax income for the year.
Each investor receives one per investment. K-1 forms are most commonly used in partnerships and in real estate ownership. It is not uncommon for a K-1 to show a “paper loss” despite having received cashflow distributions. These paper losses can help investors reduce their taxable income. Talk to your CPA about how K-1 losses from Real Estate Investments can help reduce your taxable income.
K-1s are prepared by Guerrero CPA and made available to our investors every March.