A K-1 is a tax form used by pass-through entities, including partnerships, S corporations and limited liability companies (LLCs). The form reports the income and losses of a business to its individual owners.
Private real estate investors have many choices when it comes to investing, but there are several factors that make real estate investing unique. One of these is the K-1 filing for tax purposes.
A K-1 is a form that must be filed along with your income tax return if you are invested in a pass-through entity, like a limited liability company or partnership. The form shows how much income you’ve earned from the investment and what types of deductions you can take.
Ref: https://www.cherifmedawar.com/what-is-a-k-1-and-how-is-it-used-for-taxes-in-private-real-estate/
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