Why did I receive a Schedule K-3?

If you are an investor in the Fundrise eFund, then you may receive a Schedule K-3 along with a Schedule K-1. Schedule K-3 is a new tax schedule introduced by the IRS in tax year 2021.

Schedule K-3 is an extension of Schedule K-1 and is generally used to report a partner’s share of partnership operations that are relevant for international tax reporting.

Because the Fundrise eFund is a domestic partnership with no foreign activity, the inclusion of Schedule K-3 is unlikely to be required to complete your federal tax filing.1 However, please consult your qualified tax advisor, CPA, or financial planner for guidance on your particular circumstances.

 

1. This is based on the following assumptions:

* You are a U.S. citizen, resident alien, domestic partnership, domestic corporation, domestic trust or estate

* You do not intend to claim any foreign tax credits

* You do not have any direct or indirect foreign investors

* You do not intend to claim a foreign derived intangible income (“FDII”) deduction

* You are not subject to the base erosion anti-abuse tax (BEAT regime)