![]() ![]() 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.
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