Frequently Asked K-1 Reporting Questions

  1. When will I get my tax information?
  2. Why is my tax information always so late?
  3. What tax forms are necessary for reporting my tax credits?
  4. Do I need to mail in my Schedule K-1 to the IRS?
  5. I have more than one Boston Capital Investment.
  6. What is the cusip number for this investment?
  7. How can I use my passive losses?

1. When will I get my tax information?
Every attempt will be made to get you your tax information prior to April 15, please note that the IRS has extended the filing date to May 17, 2021. Signup at   www.bostoncapital.com to “Go Paperless” and receive and email notification when your account documents are available.

2. Why is my tax information always so late?
Your investment has underlying properties which must each have their own tax return prepared by their local accountant. This information is then submitted to Boston Capital. The Fund's accountants gather this information as it is completed, check to ensure that everything has been accurately accounted for, and then prepare your Fund's tax return

3. What tax forms are necessary for reporting my tax credits?
You may need to use the following forms to report your low-income housing tax credits: Form 8582 (Passive Activity Loss Limitations); Form 8582-CR (Passive Activity Credit Limitations); Form 3800 (General Business Credit). (Individuals are no longer required to complete and file Form 8586 (Low-Income Housing Credit). The credits are reported directly on Form 3800)

4. Do I need to mail in my Schedule K-1 to the IRS?
No.

5. I have more than one Boston Capital Investment, will I receive more than one K-1?
Yes. A separate K-1 will be created for each investment. The K-1s are created and mailed by Fund, so you probably will not receive all of your K-1 ' s on the same day. This also applies to the availability of documents on the website. When filling out your tax forms, you will need to add the figures from each of your K-1s and then you only need to fill out one set of forms.

6. What is the cusip number for this investment?
Boston Capital's investments do not have cusip numbers.

7. How can I use my passive losses?
Passive losses may be used to offset passive income only. You may use the passive losses from your Boston Capital investment if you have passive income from another passive investment. As a result of the 1986 Tax Reform Act, these passive losses are not usable against earned or portfolio income. To use these losses, you must report them on the Form 8582 and carry that information to Schedule E.

If you have any questions, please do not hesitate to contact Boston Capital's Investor Services Department, toll free, at 800-944-1439