Delivering Accurate K-1s To Tax Credit Investors

Accurate, timely K-1s keep investor relationships strong and cash flowing.

Start with the agreement
Your waterfall drives allocations—confirm special allocations, deficit restoration obligations, and any targeted capital account provisions. Reconcile the audited trial balance to the tax return early.

Communication is part of accuracy
Share a calendar with investors and property managers. Clarify data cutoffs and who reviews draft K-1s. Keep a one-page memo that explains first-year proration, state filings, and any unusual items.

Multi-state? Plan composite filings
If you have nonresident partners in multiple states, decide whether to file composite returns, withhold, or both—well before March.

Deliver investor-ready packets
Include a concise narrative, capital account rollforward, and state instructions so funds can process returns quickly.

Want fewer K-1 questions this season? Build a repeatable packet now.