Ep 87 - Understanding Your K-1 From Real Estate Investing w/ Kris Bennett

The Mark Perlberg CPA Podcast

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Listen to Kris Bennett and Mark Perlberg break down the complexities of K-1 partnership tax forms for real estate investors, highlighting how understanding these documents can lead to significant tax savings and strategic investment planning.
• K-1 forms show your share of income flowing from a partnership investment, appearing different from W-2 or 1099 income
• Understanding capital accounts is crucial - a negative capital account doesn't mean you've lost ownership in the investment
• Real estate professional status can allow investors to deduct rental losses against active income
• Cost segregation studies generate significant tax benefits but must be strategically timed
• Depreciation recapture and capital gains taxes significantly impact investment returns when properties are sold
• Partnership structures make 1031 exchanges challenging without advance planning
• State tax implications differ from federal treatment, requiring careful consideration
• Suspended passive losses can offset future capital gains from real estate sales
• K-1 delays are common due to the complex nature of partnership tax accounting
• Advanced tax planning becomes increasingly valuable as investment portfolios grow
Learn more about tax strategies at taxplanningchecklist.com or connect with Kris Bennett at storageinvestorshow.com to discuss storage and flex space investment opportunities.

Chapters

1. Introduction to K-1 Basics (00:00:00)

2. FlexSpace vs Self-Storage Investing (00:06:03)

3. Understanding Partnership Tax Structures (00:15:02)

4. Tax Planning with Cost Segregation (00:31:44)

5. Analyzing Real K-1 Examples (00:43:02)

6. Capital Gains and Depreciation Recapture (00:54:47)

7. Proactive Tax Planning Strategies (01:06:05)