Schedule K-1 is the IRS form reporting a partner's share of income, deductions, and credits from a partnership or LLC taxed as a partnership. Core document for multifamily syndication investors.
For LA multifamily owned in partnership or LLC structures, K-1s report each partner's proportional share of the entity's income items. LP investors in syndications receive K-1s annually; the K-1 feeds into their personal tax return.
LA multifamily syndication K-1s are often issued late (March-September) — a frequent LP complaint. During due diligence on syndicated properties, multiple years of K-1s for the partnership and/or sponsor are standard requests. Clean, timely K-1 history signals sponsor discipline.
From the Sterman LA Multifamily Glossary — defined the way a broker with $1.41 billion across 254 closed transactions actually uses these terms.
Michael Sterman, Senior Managing Director Investments, Marcus & Millichap.
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