K-1 Tax Form vs 1099-DIV: Which One 125 Funds Send (2026)

Why the form follows the tax status, not the property

A K-1 and a 1099-DIV can describe income from the same apartment building. What differs is the wrapper. A REIT or a regulated investment company (a BDC or an interval fund) is a corporation for tax purposes: it pays you a dividend and reports it on a Form 1099-DIV. A partnership pays no income tax of its own; it files Form 1065 and gives each partner a Schedule K-1 with their share of income, losses and deductions, whether or not any cash went out. Belpointe PREP, a listed opportunity-zone real estate fund taxed as a partnership, puts it in one line of its 10-K: “You will receive a Schedule K-1 to IRS Form 1065, which could increase the complexity of your tax circumstances.” It adds that your tax on its income “could exceed the amount of cash distributions, if any, that we make to you for that taxable year, thus giving rise to an out-of-pocket tax liability.”

Two other wrappers matter in this market. Note programs that pay interest (Compound Real Estate Bonds, Groundfloor Yield) send a Form 1099-INT. And a Delaware statutory trust built like the one in Rev. Rul. 2004-86 is, in the IRS's words, a grantor trust: “Because DST is a grantor trust, the outcome to the parties will remain the same”. A grantor trust does not file a partnership return, so it is not a K-1 issuer (our reading); the investor reports the trust's items as an owner. None of the DSTs in our vehicle registry files anything with the SEC beyond Form D, so none appears in the census below.

How we built the census

We started from our registry of non-traded vehicles (REITs, BDCs, interval and tender-offer funds, Regulation A funds and evergreen partnership funds) and added a few retail vehicles it lacked. For each one we ran SEC full-text searches for “1099-DIV”, “Schedule K-1”, “Form 1099” and “grantor trust” in filings from October 2024 to October 2026, downloaded the most recent offering document or annual report that matched (prospectus, post-effective amendment, Regulation A offering circular, N-2, 10-K or Form 10), and kept a vehicle only if a sentence in it says what form investors get. A script then checks every quoted sentence and a tax-classification phrase against the downloaded text and stops if either is missing. 125 vehicles passed. Vehicles whose filings never name the form (several Lightstone REITs, Arrived Homes series, Concreit, Starwood Credit Real Estate Income Trust among them) are left out rather than guessed.

The split is clean (our count): no REIT, BDC or interval fund in the census sends a K-1, and no partnership sends a 1099. Of the 97 1099 senders, 77 name the 1099-DIV, 17 say only “Form 1099” and 3 name the 1099-INT. Seven of the 49 interval and tender-offer funds are themselves taxed as REITs (KKR Real Estate Select Trust, Clarion Partners, PIMCO Flexible Real Estate Income, CrowdStreet REIT I, Fundrise Income Real Estate Fund, Pender, Thirdline); the other 42 are RICs. Either way, the investor gets a 1099.

The 27 vehicles that send a Schedule K-1

These are the vehicles in the census whose own documents say you get a K-1, sorted by the date they aim for. Implied 2027 dates for tax year 2026 are our calendar arithmetic: 75 days after December 31 is March 16, 90 days is March 31.

Eight of the 27 are Regulation A real estate partnerships, the closest thing in SEC filings to a crowdfunding syndication. The rest are evergreen funds from large sponsors (Blackstone, KKR, EQT, Apollo, Carlyle, Warburg Pincus, PIMCO, TPG, Vista, Stonepeak, ISQ) plus CNL Strategic Capital, an LLC that owns middle-market companies, TriLinc and Belpointe. Three details from the filings change what a holder should expect:

• The K-1 depends on what the fund owns. KKR's two conglomerates say the information is subject to delay because of “the late receipt of any necessary tax information from lower-tier entities”. Warburg Pincus Access Fund goes further: “the General Partner expects that WP ACE will not file its federal income tax return for a given year until after April 15”.
• The same fund can send both forms. Apollo Asset Backed Credit Co, Apollo Infrastructure Co and PIMCO Asset-Based Lending Co sell two series of the same portfolio. Apollo Infrastructure Co: “Series I has elected to be treated as a corporation for U.S. federal income tax purposes and Series II is intended to be treated as a partnership for U.S. federal income tax purposes.” Only Series II sends a K-1, so the series on your account statement decides the form.
• A fund can change wrappers. Fortress Private Lending Fund's agreement says it is a partnership until “the CTB Election Date” and a corporation after, and that before then it will “endeavour to deliver an estimate of amounts to be reported on a Unitholder’s IRS Schedule K-1 for such taxable year on or prior to April 15 of the next succeeding year”.

For the exact delivery wording of most of these funds and the partnership late-filing penalty, see our page on when K-1s are due in 2027; this page does not repeat it.

Real estate vehicles that send a 1099

The real estate side of the census: 19 non-traded REITs, 7 registered funds taxed as REITs, 11 Regulation A REITs and funds and 3 Regulation A note programs. Every one says a 1099, except Ark7 Properties Plus, whose 1-K says that “Should REIT status not be suitable, we may opt for the series to be taxed as a partnership”, which “would involve using Schedule K-1 for tax reporting”.

Most of the large perpetual-NAV REITs use the same sentence: “we expect your IRS Form 1099-DIV tax information, if required, to be mailed by January 31 of each year” (BREIT, SREIT, J.P. Morgan, Brookfield, Apollo, Invesco, IPC, BGO and StratCap). Two say something else. JLL Income Property Trust: “your Form 1099-DIV and 1099-B tax information, if required, will be mailed by February 15 of each year”. Roots Real Estate Investment Community I, a Regulation A REIT: “We will also provide you with Form 1099-DIV tax information, if required, in electronic form by March 15 of the year following each taxable year.” Some sponsors sell the 1099 as a feature. CrowdStreet REIT I describes itself as offering accredited investors private real estate “with the convenience of Form 1099-DIV tax reporting”, and Value Add Growth REIT IV says plainly: “Investors will not receive a Form K-1 from the Company.”

Funds that own REITs or other funds are the exception to a January date. Columbia Credit Income Opportunities Fund warns that “it may be necessary for the Fund investing in REITs to request permission to extend the deadline for issuance of Forms 1099-DIV beyond January 31”; four other interval funds (two Variant funds, AFA Asset Based Lending and First Trust Alternative Opportunities) carry the same warning. When a 1099-DIV is due and why it gets corrected is on our 1099-DIV due date page.

Where a K-1 can still appear around a non-traded REIT

A REIT share sends a 1099-DIV, but the REIT usually owns its properties through an operating partnership. JLL Income Property Trust contributes offering proceeds to its operating partnership “in exchange for partnership units (“OP Units”)”, and 1st stREIT Office describes the same structure. If you end up holding OP units yourself, typically after contributing property or exchanging a DST interest into the REIT's operating partnership, you hold a partnership interest, and partnership interests come with K-1s (our reading). Our DST 721 exchange guide covers that route; our DST guide covers the trusts themselves.

A K-1 inside an IRA: UBTI and Form 990-T

This is where the form matters most for an IRA or Roth IRA holder. The IRS says in Publication 590-A (2025) that an IRA is taxed on unrelated business income, and “An unrelated trade or business means any trade or business regularly carried on by the IRA or by a partnership of which it is a member.” The partnership tells you on the K-1: box 20, code V, is “Unrelated business taxable income”, and if it is filled in, the partnership also reports “an IRA partner’s unique EIN in box 20, code AR.”

The threshold and the deadline are in the same IRS paragraph: “If the IRA has $1,000 or more of unrelated trade or business gross income, the IRA trustee is required to file a Form 990-T”, and “The Form 990-T must be filed by the 15th day of the 4th month after the end of the IRA’s tax year.” For a calendar-year IRA that is April 15 (our arithmetic). The Form 990-T instructions list “a Roth IRA” among the accounts that file, and allow “A specific deduction of $1,000”. The tax is paid from the IRA.

The statute explains why the two forms behave differently. 26 U.S.C. 512(b)(1) says “There shall be excluded all dividends, interest, payments with respect to securities loans”, which covers a REIT or BDC dividend. 512(c)(1) makes a partner include “its share (whether or not distributed) of the gross income of the partnership from such unrelated trade or business”, and section 514 pulls in income from debt-financed property in proportion to the debt. The funds say the same thing from their side:

So the practical rule for an IRA (our reading, not advice): a 1099-DIV vehicle normally creates no UBTI for the IRA; a K-1 vehicle that uses leverage or runs an operating business can, and the custodian then needs the K-1 in time to file a 990-T by April 15. Our real estate crowdfunding IRA guide covers custodians and the debt-financed income calculation.

The due-date reality

The IRS rule for the partnership is short: “Generally, a domestic partnership must file Form 1065 by the 15th day of the 3rd month following the date its tax year ended”, and “For calendar-year partnerships, the due date is March 15.” The partnership can extend: “File Form 7004 by the regular due date of the partnership return.” For tax year 2026 that makes the unextended date Monday, March 15, 2027 (our arithmetic). A REIT, BDC or interval fund is on the information-return calendar instead; for tax year 2025 the IRS General Instructions read “Generally, you must furnish Forms 1098, 1099, 3921, 3922, and W-2G information by February 2, 2026.”

Set against those rules, the census says (our count): 18 of the 27 K-1 senders aim past March 15, so a K-1 in late March is the plan, not a failure; 27 of the 97 1099 senders promise January 31 and most of the rest give no date. If you hold even one K-1 vehicle, an extension of your own return is the normal case. The legal detail (Form 7004, the September deadline, penalties) is on our K-1 due date page.

State returns: the cost that comes with the K-1

A REIT pays its state taxes and sends you a dividend taxed where you live. A partnership passes through income by state, and states tax nonresidents on income from property inside their borders. New York's tax department: “As a nonresident, you only pay tax on New York source income, which includes earnings from work performed in New York State, and income from real property located in the state.” California's 2025 Form 565 booklet says “Distributions to certain nonresident partners are subject to withholding for California tax”, with no withholding required “if distributions of income from California sources to the partner are $1,500 or less during the calendar year”, and lets nonresident partners join a group return: “Nonresident partners of a partnership doing business or deriving income from sources within California may elect to file a group nonresident return (R&TC Section 18535).”

The funds expect this. Gratus Capital Properties Fund III promises each member a K-1 “together with corresponding forms for state income tax purposes”. Whether a small allocation actually requires a return depends on each state's filing threshold, which this page does not survey.

Inheriting a K-1 vehicle or a 1099 vehicle

Searches for K-1 tax form inheritance mix up two different forms. If you inherit shares or units, the basis rule is the same for both wrappers: 26 U.S.C. 1014 sets the basis at “the fair market value of the property at the date of the decedent’s death”, and IRS Publication 551 (12/2025) says the same in plain words, “The FMV of the property at the date of the individual's death.” That resets the gain on a REIT share or a fund unit you inherit in a taxable account.

A partnership adds one step. Your basis in the units steps up, but the partnership's basis in its own buildings moves only if it adjusts it: 26 U.S.C. 743(b) applies “In the case of a transfer of an interest in a partnership by sale or exchange or upon the death of a partner” to a partnership “with respect to which the election provided in section 754 is in effect” (or with a substantial built-in loss). Without it, the heir can be allocated gains and smaller depreciation based on the old inside basis (our reading). Some operating agreements address it; Norhart Invest's lets the company elect “under Code Section 754 to adjust the bases of the assets of the Company in accordance with the provisions of Code Section 743”, with costs on the transferring member. Ask the sponsor whether the election is in effect.

Two limits. Units inside an IRA do not get this step-up: 1014(c) says the section “shall not apply to property which constitutes a right to receive an item of income in respect of a decedent under section 691”, and an inherited IRA balance is taxed when withdrawn (our reading). And the K-1 an heir often receives in the first year is not from the fund at all: it is a Schedule K-1 (Form 1041) from the estate or trust. The IRS instructions: “Schedule K-1 (Form 1041) is used to notify the beneficiaries of the amounts to be included on their income tax returns.” A calendar-year estate or trust files by the 15th day of the 4th month, with Form 7004 available for six more months.

Decision table: what to expect before you buy

What you can do with this

• Find your vehicle in the CSV and read its own sentence. If it is not there, search its prospectus or offering circular for “Schedule K-1” and “1099”; the answer is usually in a question-and-answer section near the front.
• In an IRA, prefer to know before you buy. If the vehicle sends a K-1, ask the sponsor whether it expects UBTI (box 20, code V) and ask your custodian how it files Form 990-T and what it charges.
• Plan the extension, not the surprise. With any K-1 vehicle, assume your own return goes on extension and pay estimated tax by April 15.
• Check the series. At Apollo and PIMCO evergreen funds the series on your statement, not the fund name, decides K-1 or 1099.
• For an inherited K-1 position, get a date-of-death value from the sponsor and ask whether a section 754 election is in effect; keep the estate's Schedule K-1 (Form 1041) separate from the fund's.

FAQ

Sources, read and saved on October 9, 2026: SEC EDGAR filings of the 125 vehicles named in the CSV (latest offering document or annual report stating the tax form, one accession number per row; verbatim excerpts kept with the data), including BREIT 424B3 0001662972-26-000055, JLL Income Property Trust POS AM 0001628280-26-025755, Roots Real Estate Investment Community I 253G2 0001493152-26-022456, Belpointe PREP 10-K 0001493152-26-011713, KKR Private Equity Conglomerate 10-K 0001957845-26-000029, Warburg Pincus Access Fund 10-K 0001193125-26-029707, Apollo Infrastructure Co 10-K 0001193125-26-132670, Fortress Private Lending Fund Form 10/A 0001140361-25-026803, CrowdStreet REIT I N-CSR 0001999371-26-005240, Value Add Growth REIT IV 253G2 0001013762-25-003591, Columbia Credit Income Opportunities Fund 486BPOS 0001193125-25-290820, Gratus Capital Properties Fund III 253G2 0001477932-26-004389, Norhart Invest 1-K exhibit 0001213900-25-032727 and BridgeWell Secured Income 253G2 0001731122-26-000819; IRS Instructions for Form 1065 (2025), Partner's Instructions for Schedule K-1 (Form 1065) (2025), Publication 590-A (2025), Instructions for Form 990-T (2025), Publication 551 (12/2025), Instructions for Form 1041 (2025), General Instructions for Certain Information Returns (2025) and Rev. Rul. 2004-86 (I.R.B. 2004-33) from irs.gov; 26 U.S.C. 512, 514, 743, 754 and 1014 (Cornell LII); California Franchise Tax Board 2025 Form 565 Booklet; New York State Department of Taxation and Finance nonresident FAQs. Counts, calendar dates and the decision table are our arithmetic and reading. This is analysis of public records, not investment, legal or tax advice.