How do I make sense of my K-1?

Simply put, with difficulty! Speak to your CPA.

Disclaimer: I am not a CPA, financial adviser, tax planner, lawyer, doctor or anything close to any of these things. I’m just a real-estate investor with some great partners whom I’m very thankful for and trying to help out by answering their questions as best that I can.

The K-1 is a tax reporting document. Unless you are an experienced CPA or otherwise very familiar with the tax code I wouldn’t try to over analyze your K-1. Obviously check the details like your name, address and SSN/EIN, etc. but as for the numbers themselves don’t over-analyze them without the help of your CPA.

We had an investor in one of our investments try to dissect it and tie it back to the monthly reports we’d been sending out. After spending many hours and days of his time, our time, the time of other passives and mentors, he came to the conclusion that the numbers matched up. We use a professional CPA company with experience in Real Estate for a reason!

Neither my wife or myself are CPAs or financial experts in any sense. So we cannot and will not be answering questions about the content of the K-1s. Sorry, but please consult your CPA with specific questions.

Having said that we would like to share some of the frequently asked questions about the K-1. Again, for clarification or more details, speak with your CPA or tax planning professional.