Conduit tax treatment allows income to pass through an entity without additional taxation, making certain entities preferred vehicles for real estate ownership as they distribute income and losses directly to their owners, maintaining the earnings' nature.
FORM 1065 is a federal income tax form used by partnerships and certain other entities to report their income, gains, losses, deductions, and credits. The information on FORM 1065 is used to calculate the individual tax responsibilities of the partners or members.
Schedule K-1 is a tax form used to report a partner or beneficiary's share of income, losses, capital gains, and other tax information passed through from a partnership or trust.
