Rental Property Investor · Indianapolis, IN · Member since 2015 · 108 posts · 66 votes
I'll keep this short and sweet.
I have an LLC with a partner and we have 2 rental properties. My partner is in the process of getting things lined up to file taxes for the first time for the business.
On the other hand, I'm currently in the process of obtaining an FHA loan for a personal residence. They've asked me for a K1 form, but I don't know how to get this document. My DTI is close so I've been told that it's pretty important that I supply this form.
I have $1,500 in escrow for the property and have 3 roommates lined up to pay me $1,500/mo which will give me $275 CF and no living costs. So it's pretty critical to ensure I get approved for the loan.
Whoever prepares the tax return for the partnership also prepares the Schedule K-1. The partnership return must be done first, then the K-1 reports each partner's share of the net income/loss from the business.