What is a Schedule K-1?

A Schedule K-1 is a tax document that is commonly used in partnerships and certain other types of pass-through entities, including some venture capital funds. It is used to report the income, gains, losses, deductions, and other tax-related information that a partner or investor in such an entity needs to report on their individual tax return.

At the end of each tax year, the venture capital fund will prepare a Schedule K-1 for each of its investors. Each investor will use the information on it to report their share of the venture capital fund’s income and losses on their personal income tax return.