![]() The individual investor then reports this information on his or her tax returns. ![]() It serves a similar purpose for tax reporting to the Form 1099, which reports interest and dividends from stock investments. The K-1 tax form reports each individual investor’s share of the partnership’s earnings, losses, deductions and credits from the business and any contributions or distributions made during the year. This is good for tax purposes because the tax deferral, tax shields, and the favorable capital gains rate paid at sale are big advantages of investing in private real estate. tax code allows the use of certain pass-through taxation for such investments, which means that 100% of income and expenses flow through the partnership to the owners or partners. ![]() ![]() The Schedule K-1 (Form 1065) is an Internal Revenue Service (IRS) tax form issued annually for businesses that operate as a partnership, such as an investment in private real estate with Origin. ![]()
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