Investors receive pass-through tax benefits, which means that all distributions flow to each limited partner. The Limited Partnership pays no taxes. Investors also benefit from the depreciation deduction for real estate, which reduces taxable income. Investors receive a Schedule K-1 by March 15th each year which includes a report of each investor’s share of profits, losses, deductions, and credits to include in their tax returns. Typically the first year includes a roughly 50-70% tax write-off due to accelerated depreciation. In general, investors will not have to pay taxes on distributions for the first 5-7 years due to these tax benefits and the structure of our deals.