As a member in the LLC that purchases the property, you will receive a K-1. A K-1 is a tax form used by LLCs to provide investors with detailed information on their share of a partnership’s taxable income. LLCs are generally not subject to federal or state income tax, but instead issue a K-1 to each investor to report his or her share of the partnership’s income, gains, losses, deductions and credits. The K-1s are provided to investors on an annual basis so that each investor can include K-1 amounts on his or her tax return. In general there are significant tax benefits of investing in a real estate syndication like ours because of accelerated depreciation that allows for “tax losses” passed through to the investor.