Skip to content
×
Pro Members Get
Full Access!
Get off the sidelines and take action in real estate investing with BiggerPockets Pro. Our comprehensive suite of tools and resources minimize mistakes, support informed decisions, and propel you to success.
Advanced networking features
Market and Deal Finder tools
Property analysis calculators
Landlord Command Center
ANNUAL Save 54%
$32.50 /mo
$390 billed annualy
MONTHLY
$69 /mo
billed monthly
7 day free trial. Cancel anytime
×
Take Your Forum Experience
to the Next Level
Create a free account and join over 3 million investors sharing
their journeys and helping each other succeed.
Use your real name
By signing up, you indicate that you agree to the BiggerPockets Terms & Conditions.
Already a member?  Login here
Tax, SDIRAs & Cost Segregation
All Forum Categories
Followed Discussions
Followed Categories
Followed People
Followed Locations
Market News & Data
General Info
Real Estate Strategies
Landlording & Rental Properties
Real Estate Professionals
Financial, Tax, & Legal
Real Estate Classifieds
Reviews & Feedback

Updated 12 months ago on . Most recent reply presented by

User Stats

11
Posts
7
Votes
Kevin Barry
7
Votes |
11
Posts

K-1 Partnership Tax Question

Kevin Barry
Posted

My wife and I own an LLC (Partnership) that has invested in Open Door Capital. Our partnership just received our K-1 for 2023. I realize that our partnership would need to file our 1065 for 2023, but would then the partnership issue subsequent K-1s to me and my wife, to which we would include when we file our personal taxes? Not exactly sure how this would work to make sure we are taking advantage of the loss reported for our own personal taxes.

Most Popular Reply

User Stats

5,150
Posts
6,033
Votes
Michael Plaks
#1 Tax, SDIRAs & Cost Segregation Contributor
  • Tax Accountant / Enrolled Agent
  • Houston, TX
6,033
Votes |
5,150
Posts
Michael Plaks
#1 Tax, SDIRAs & Cost Segregation Contributor
  • Tax Accountant / Enrolled Agent
  • Houston, TX
Replied
Quote from @Kevin Barry:

 Not exactly sure how this would work to make sure we are taking advantage of the loss reported for our own personal taxes.

Good news:
Your understanding of the process is correct. Let's say that the K1 from ODC says $40,000 loss. You file your own partnership return that reports this $40k loss, which will result in two K1s from your partnership: $20k K1 loss to you and $20k K1 loss to your wife (assuming 50/50 ownership). On your personal joint return you have 2 x $20k = $40k loss.

Bad news:
You may not be able to apply your $40k loss to your income in the current year. It depends on your tax situation, and here's a detailed explanation:  
https://www.biggerpockets.com/forums/51-tax-legal-issues-con...
  • Michael Plaks
  • Loading replies...