Are you a real estate investor grappling with the intricacies of the K-1 form? In this episode, we’ve got you covered! Our guest, Kelsey Head, a tax expert with nearly two decades of experience, breaks down all the essential information about the K-1 form and how to maximize its benefits.
Kelsey stresses the importance of promptly verifying personal information on the K-1 upon receipt. She emphasizes checking fundamental details like name, entity, social security number, address, and EIN to save time and hassle in the future. Additionally, she underscores accurately reflecting contributions and distributions on the form.
We explore the common confusion arising during the sale year when LPs observe a substantial amount of income on their K-1s. Kelsey clarifies that receiving cash from a sale does result in income, tied to the gain from the property sale.
Investors often worry about the timing of filing tax returns, particularly if awaiting their K-1s. Kelsey assures listeners that filing a few weeks after the April 15th deadline isn’t an issue from an IRS standpoint. She emphasizes no correlation between late filing and increased audit risk.
For those seeking additional tax advice or with K-1 inquiries, Kelsey can be reached via email at [email protected], noting response times might be slower during the busy tax season. Take advantage of her expertise and ensure you have all the necessary information for your real estate investments.
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About Kelsey Head:
As a partner at Head Tyler LLP, a firm she founded in 2020 amid the COVID pandemic after leaving a large firm where she also held a partner position, Kelsey Head brings almost 18 years of tax experience and CPA expertise to her role. With a wealth of knowledge, she establishes herself as a trusted expert in the field. Committed to providing clients with valuable insights and guidance, Kelsey’s extensive tax background defines her as a reliable professional.
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