Generally, you will receive a K-1 for your equity investments and either a 1099 or K-1 for your debt or preferred equity investments. We work with sponsors and lenders to deliver your tax documents as soon as possible to help ensure timely filing.
Any investment that makes use of an LLC as special purpose vehicle for your investment will issue a K-1. For the minority of EquityMultiple investments that don't involve an LLC structure (such as mezzanine debt investments that instead entail an issuance of dependent notes), you will instead receive a 1099-INT.
The tax implications of your investment will vary by offering type and you are strongly encouraged to consult your own tax advisors regarding the tax treatment of your investments. In general, you may have to file state taxes for each state where you earned investment income via an EquityMultiple investment, subject to the tax laws of that state. Again, this will depend on the state, the investment, and the particulars of your tax situation – we encourage you to seek the guidance of an income tax professional on these matters.
Certain debt investments and other investments will entail a note, and hence generate a 1099, which EquityMultiple seeks to deliver in advance of any IRS deadline.
Note: Multiple Financing Note investments (also known as Alpine Note Series investments) will receive a single 1099 tax document per tax year. Those invested in financing notes launched after December 1st, 2022 need only to file one tax document in the year that the note matures.
In many cases, investors will need to file state returns for each investment that income was earned on the EquityMultiple platform, in a given year. We recommend consulting a tax professional to determine which, if any, of your investments will require that state taxes are filed.
All tax documentation will be available to you via the My Documents page of your investor portal. To access these documents:
Log into the investor portal.
Click on your name at the top right-hand of the screen.
Click My Documents
Click the Tax Documents tab:
You will also be notified via email that a tax document has become available in your Documents section of the Investor Portal. For more information on the Tax Tracker, see our Getting Started with the Tax Tracker article.