Understanding your Schedule K-1

A Schedule K-1 reports your share of a partnership's income, losses, deductions, and credits for the year. If you invested through an entity taxed as a partnership — most Wefunder funds and many SPVs are LLCs taxed as partnerships — you may receive a K-1. For how to find and download it, see "Downloading tax documents (K-1s)." ## Which investments generate a K-1 You may receive a K-1 for an investment held through a fund or SPV that is a partnership/LLC, if it had a qualifying taxable event during the year. You typically won't receive one for a direct SAFE or convertible note in a C-corporation — those don't produce a K-1 while you simply hold them; a taxable event usually happens only on conversion, sale, or another liquidity event. Not sure which you have? Check wefunder.com/portfolio or ask our team. ## Why K-1s arrive later than other forms A K-1 can only be prepared after the partnership closes its books, so they arrive later than W-2s or 1099s — sometimes after the April 15 deadline. Many partnership investors file an extension for this reason. This isn't tax advice — check with your tax professional. ## Why you might get multiple or amended K-1s Sometimes a corrected or amended K-1 is issued after the original. Always use the most recent, latest-dated version — it replaces earlier ones. If you already filed using an earlier K-1, ask your tax advisor whether you need to amend. ## Something look off? Email updates@wefunder.com and we'll check with the fund administrator. For how to report it on your return, consult your tax advisor.