K-1 Taxation

K-1s are common for our client base & may result from:

• Income from passive or active partnerships
• Allocable share of Publicly Traded Partnerships
• Carry from employment at a Hedge Fund or Private Equity Fund 
• Real estate investments
• Trusts, estates, inheritances, liquidations, etc.

Characteristics of K-1s can include:

• Multiple states
• Foreign tax credit items
• Supplementary notes
• Capital gains (long vs. short term)

For these types of situations, we are frequently approached with the following questions:

• How much should I set aside for tax if my primary compensation is K-1? 
• Are there any tax-saving strategies for me available for me to limit my tax exposure?
• Can I take deductions against my K-1 income & what types of deductions would qualify? 
• Can you assist with filing my annual tax return? 
• Should I make estimated tax payments, and if so, how much?
• How are state taxes computed? 
• How do I use passive unallowed activity losses? 

These (and more) are all common scenarios that we compute for the clients.

Contact us at hello@dimovtax.com if you would like to get started with an analysis, tax return, or to book a consultation to discuss strategy.