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.
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Your journey
More on this stage: Deep Dive: Evaluating a Sponsor’s Track Record · Deep Dive: Tax Basics for Real Estate LPs
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