When you participate in a RealtyShares deal, you become a member of a limited liability company (“LLC”) that is taxed as a partnership. Partnerships are not subject to taxation as the income, deductions and/or credits merely flow through to the individual partners. However, each partnership is required to file a tax return and list all partner information such as name, address and social security number. So even if you do not expect immediate taxable income to flow through to you, you are required to furnish the information for IRS compliance.
Articles in this section
- What is Form K-1?
- What is Form 1099-INT?
- Do I have to file a state tax return?
- When will my Form K-1 and/or Form 1099-INT be available?
- I don't expect any income reported for my RealtyShares investment this year, so why did you need my social security number or EIN?
- There is a problem with the social security number, address or other information on my K-1 or 1099. What do I do?
- Are these payments subject to U.S. withholding?
- Does RealtyShares withhold taxes prior to making monthly or quarterly distributions to me?
- Is my investment subject to the Net Investment Income Tax (“NIIT”)?
- How is my adjusted tax basis determined for computing gain or loss?