Information of K-1 forms for EB-5 investors

EB-5 investors will receive a K-1 form from the partnership of their EB-5 investment during tax season. Some investors may feel somewhat confused after receiving this new form and may not understand the content or know what the form is for.

Today we will take a quick look at the K-1 form.

The partnership uses the Schedule K-1 form (also known as Form 1065 ) to report your share of the partnership’s income, deductions, credits, etc. In the context of EB-5 immigrant investors, the IRS requires that all cooperative enterprises (such as a Limited Partnership or an LLC) provide a K-1 form to investors. The main purpose of this form is for the tax filings of both the partnership and the investor. Please consult with your accountant to see how best to incorporate and report your partnership income as reported in the K-1 with your own tax filing for the fiscal year after receiving a K-1 form.

* K-1 form consists of three parts, which are: information about the partnership, information about the partner, and the partner’s share of current year income, deductions, credits, and other items.

The K-1 forms will also be included with an EB-5 investor’s I-829 petition to remove conditions.

Since an investor’s situation varies, we recommend you consult with a professional CPA if you have specific tax questions or needs.