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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.

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