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Deep Dive: Tax Basics for Real Estate LPs

Pass-through taxation, depreciation, passive losses, state filings and K-1 timing. Not tax advice.

6 min readNow you think you are an investor

Partnerships pass income and losses through to partners on Schedule K-1. Depreciation can offset taxable income, but passive-activity rules may limit using losses. You may need to file in states where properties are located. K-1s can arrive after April 15, so many LPs file extensions. Confirm everything with your CPA.