NOTICE: An investment in commercial real estate is subject to risk, including the risk that all of your investment may be lost.

Interested in learning more? Contact us at (855) 622-3677 or for more information. If you are a current FNRP investor, please log in to your investor portal to see when you can expect your K-1. FNRP intends to file all partnership returns and release K1’s no later than March 31st, 2023. K-1s are distributed to investors simultaneously with the filing of the full partnership returns. The deadline for sponsors to file partnership returns with federal and state tax agencies is April 15 th of the following year, although extensions can be issued until September 15th. You will receive a Schedule K-1 from sponsors showing your share of any income or loss earned by real estate partnership if you have an outstanding investment during the calendar year.

Will I still receive a K-1 even if I haven’t received a distribution yet? Additionally, investors may receive a state K-1 for the state that the property is located in. Investors can expect to receive a separate federal Schedule K-1 for each investment. The income, losses, deductions, and other items reported on the K-1 are included in each individual shareholder’s tax filing. Specifically, the K-1 Form is designed to capture things like real estate income, bond interest, royalties and dividends, capital gains, foreign transactions, and any other payments that a member might receive as part of their involvement with the LLC.Īgain, the distribution of the Schedule K-1 passes the income tax liability through the corporation to the individual. The Schedule K-1 Form is used to report each member’s share of the partnership’s income, loss, and deductions. As a result, investors will receive a Schedule K-1 form.Īs part of filing their tax returns, multiple-member LLCs are required to file Internal Revenue Service (IRS) tax form Schedule K-1 each tax year. Although the entity is technically a corporation, one of the benefits of the LLC is that it is taxed as a partnership, meaning income and expenses “pass through” it and go directly to the individual shareholders/investors who are responsible for claiming their share of income or loss on their own individual income tax return. The typical private equity real estate transaction is structured as a Limited Liability Corporation or “LLC” (as opposed to an S-Corporation), which is thought of as a “pass through entity” for tax purposes.

Sample k1 tax form