Tax

If you’ve invested in a real estate fund or syndication and just received your first Schedule K-1, you’re probably staring at a multi-page document filled with box numbers, codes, and dollar amounts that don’t seem to connect to any number you recognize. You know how much you invested. You know how much cash you received.

Late K-1s are one of the most common operational failures in real estate funds. And unlike most operational problems, this one hits you from two directions at once: IRS penalties that cost real money and LP frustration that costs future capital. We deal with K-1 timing issues every tax season. Sometimes the delay is the

If you run a real estate partnership or fund, Form 1065 is the most important tax document your fund produces each year. It’s the federal partnership return that reports the fund’s income, deductions, gains, losses, and credits to the IRS. And it generates the Schedule K-1s that every investor needs to file their personal return.

When GPs ask us, “What’s the best entity structure for a real estate fund?” they usually mean the fund entity itself. Should it be an LLC or a limited partnership? That’s the wrong question. Or at least, it’s an incomplete one. Your fund isn’t one entity. It’s a stack of entities, and each one serves

Cost segregation is one of those strategies that every real estate fund manager has heard about, but few fully understand at the fund level. Most of the content online explains it for individual investors. Buy a rental property, run a cost seg study, take a big first-year deduction. At the fund level, it’s more nuanced.