What is a Schedule K1?

A K-1 is a standard IRS form that is issued annually to report activity from investments in partnership interests.

The K-1 will report your share of any taxable items for the calendar year for investments that you hold tokens in (which are membership interest in an LLC).

Taxable activity earned by the investment is allocated to all of the individual token holders based on ownership percentage and is reported to the investors through the K-1.