Sponsor's Year-End Calendar: From Close of Books to K-1s
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For a calendar-year syndication LLC taxed as a partnership, the Form 1065 and the K-1s are due March 15, or September 15 if the partnership files for the six-month extension on Form 7004. A sponsor's year-end work runs backward from that date: close the books in January, give the accountant a complete package by early February, review the draft in late February and deliver K-1s as soon as they are final. Tell investors the expected K-1 date in the year-end letter.
This calendar is for sponsors of deals that have closed. It is general information, not tax or legal advice; the deal's accountant sets the final schedule. DoorRaise never prepares K-1s; the deal's accountant does, and DoorRaise delivers them.
What is the calendar?
| When | Sponsor task |
|---|---|
| December | Confirm investor addresses and tax IDs are current; pay year-end bills; set a cutoff date for the books |
| Early January | Close the books; reconcile bank accounts; collect the property manager's year-end reports |
| Mid January | Send the accountant the full package (see the list below); send a year-end investor letter with the expected K-1 date |
| February | Answer the accountant's questions; review the draft return and allocations |
| By March 15 | File Form 1065 and issue K-1s, or file Form 7004 to extend to September 15 |
| After filing | Deliver K-1s to investors; answer questions; send state composite or nonresident filings if the deal makes them |
| Fall | If extended, file by September 15 and deliver K-1s; review the year's process while it is fresh |
What does the accountant need?
- Year-end bank statements for every account.
- The general ledger or the property manager's year-end financial package.
- Loan statements, the closing statement for any acquisition, refinance or sale, and any fee invoices.
- A list of capital contributions and distributions by investor with dates.
- The operating agreement and any amendments, so allocations follow the waterfall.
- Investor information: legal names, addresses and tax IDs, collected through secure means.
- Records of depreciation, cost segregation studies and capital projects. See cost segregation.
See also what a CPA does for a syndication.
What should the year-end investor letter say?
- The year's highlights and how the property ended the year against the plan.
- Distributions paid in the year and the first one expected next.
- The date investors can expect their K-1, and whether an extension is likely.
- A reminder that K-1 income can differ from cash received and that investors should ask their own tax adviser. See are distributions taxable?.
- Whom to contact with questions or a changed address.
Why do K-1s come late?
Common causes are late outside records (a refinance or sale close to year end), missing tax IDs, complex allocations and state filings that wait on the federal numbers. See why K-1s arrive late. An investor can file their own extension on Form 4868. The partnership's late-filing penalty is charged per partner per month, so deadlines matter.
A hypothetical timeline
This example is made up to show a plan, not a promise. A sponsor with a deal of 120 investors sets January 10 as the books cutoff, sends the accountant the package on January 20, receives a draft on February 20, approves it February 28 and delivers K-1s by March 10. In a year with a sale in December, the sponsor tells investors in the January letter that K-1s will come in the fall after an extension.
How DoorRaise fits in
DoorRaise helps sponsors raise equity for apartment buildings from their friends and followers under Rule 506(b) or 506(c). The deal's accountant prepares the return and K-1s; DoorRaise delivers each K-1 to the investor through investor reporting, which the $5,000 yearly administration fee covers. For books and the tax return, the sponsor can use the deal's own accountant or the optional Property Books & Taxes service. Fees: $1,500 to set up (non-refundable), then $5,000 a year from closing (only if the deal closes). See pricing.
FAQ
When are K-1s due for a syndication?
For a calendar-year partnership, March 15, or September 15 if the partnership extends.
What is Form 7004?
The form a partnership files to get an automatic six-month extension to file Form 1065.
What does a sponsor need to give the accountant?
Bank statements, the general ledger, loan and closing statements, investor contribution and distribution records, the operating agreement and investor tax information.
Can investors file before the K-1 arrives?
They can estimate or extend. Most advisers recommend extending rather than guessing, and filing an amended return later if needed.
Who delivers the K-1 to investors?
The sponsor, usually through the investor portal. DoorRaise delivers it; the deal's accountant prepares it.
Sources
- IRS: Instructions for Form 1065
- IRS: Instructions for Form 7004
- 26 U.S.C. 6072: Time for filing income tax returns (Cornell LII)
- IRS: Partners' Instructions for Schedule K-1 (Form 1065)
- IRS: Extension of time to file your tax return
This article is general information as of October 2026, not tax, legal or investment advice. The timeline is a hypothetical example. Talk to a CPA about your own deal. DoorRaise is not a law firm, broker-dealer, investment adviser or funding portal.