Multi-state K-1s, outside basis tracked year over year, and suspended losses that are still there when the deal finally sells. No surprises at year-end.
Why this is its own service
It looks like a 1040 with some extra pages attached. Underneath, three things are happening that most preparers do not do, and the cost of skipping them does not show up until the deal sells.
Section L of your K-1 shows tax basis capital, which excludes your share of partnership debt. It is not your basis. Sponsors are not required to compute yours, and most preparers never build the schedule. It gets estimated in the year it matters most.
A loss has to clear basis under Section 704(d), then at risk under Section 465, then the passive activity rules under Section 469. Losses blocked at any gate suspend and carry forward. They release at disposition, and only if someone kept score.
A partnership holding property in a state generally creates a filing obligation for you there. Six deals can mean six nonresident returns, plus composite elections and withholding to reconcile against your resident state credit.
Pricing
Every tier includes your full federal return, your resident state return, and your nonresident state returns. The tiers differ by how much planning comes with the compliance.
Essentials
For LPs who want the return prepared correctly and do not need ongoing planning.
$1,750
per year
Plus
For LPs actively deploying capital who want a second set of eyes before they commit.
$2,850
per year
Complete
For LPs with lumpy income, capital events, or a deal expected to sell.
$3,650
per year
About that onboarding fee. If you have been investing for several years without a basis schedule, year one includes reconstructing your outside basis and suspended losses from your K-1 history. That is a one-time project, not part of the annual fee, and it is quoted after reviewing what you have. It gets harder and more expensive every year it is deferred.
Fit
A fit
Not a fit
Questions
Your whole return. Federal, your resident state, and every nonresident state your partnerships create a filing obligation in. Your W-2, brokerage activity, itemized deductions, and standard credits are included. Directly owned rental property, business schedules, and foreign reporting are quoted separately because they are their own work.
We extend, by default, for every client. Partnership returns are due March 15 and nearly all of them extend to September 15, so a September K-1 is normal rather than a problem. An extension extends your time to file, not your time to pay, so we calculate and plan the April payment from your prior year position before the deadline.
Maintaining a schedule for each position: contributions, income and loss allocated to you, your share of partnership liabilities, and distributions, carried forward year over year. It determines whether a loss is deductible now or suspended, whether a distribution is tax free, and what your real gain is at exit. Section L on your K-1 is close but excludes your share of debt, which on a leveraged deal is the entire difference.
We run a conflict check before accepting any LP engagement. Depending on the situation we may decline, or set out in writing how information is handled in both directions. It is worth raising on the call rather than after the engagement letter.
They are the starting point. The final quote comes after reviewing your prior year return and a list of your positions, which takes one call. The variables that move the number are the count of K-1s, the count of states, and whether year one requires basis reconstruction.
No. This practice is partnership tax for commercial real estate: operators, syndicators, fund managers, and the limited partners who invest alongside them. If you do not hold a K-1 from a real estate partnership, this is not the right firm and we will say so on the call.
Bring last year's return and a list of the deals you are in. We will go through your K-1 count, your state exposure, whether your basis has ever been tracked, and what any of it should cost. If it is not a fit, we will both know it.
Book a callOr email matt@surefiretaxco.com