by Yieldstreet | Staff
With the tax season in full swing, many of our accredited investors are in the process of submitting their tax documentation. Yieldstreet has been distributing Schedule K1 forms, and meanwhile fielding questions investors have about where the numbers reflected on those forms come from. The goal of this article is to give you a breakdown of the numbers on your K1, and where you can find them in your online investment portfolio.
Below we will address the Section and Fields which get the most questions from our investors.
Part I deals with the Partnership information, which will be completed by Yieldstreet to identify the individual SPV name and tax identification number, depending on the investment opportunity that this K1 is for.
Part II deals with the Partner, or the investor. This part contains information about the investor’s participation in the opportunity.
Beginning capital – For most investors, this number will be 0%. If this is not the case for you, please refer to the FAQ below.
Ending capital – This percentage can be determined by taking the ratio of your allocation in a given investment to the total amount raised for the investment. For example, if you allocated $100K to an opportunity that raised $1M, your Ending Capital will be 10%.
FAQ: My Beginning and Ending Capital fields are different, how were they calculated?
Some investors will see both a Beginning and an Ending Capital in Section J. This is because certain opportunities opened prior to January 1, and were funded post January 1. Thus, the Beginning Capital reflected will be Amt Allocated/Amt Raised by January 1, and the Ending Capital will be Amt Allocated/Amt Raised post by December 31, 2016. For a detailed breakdown or if you have any questions, reach out to [email protected]
FAQ: My Ending Capital is 0%. How was this determined?
If the opportunity closed and was repaid during this tax year (by December 31, 2016), your Ending Capital will be 0%.
Beginning capital amount: This number will be $0 if the opportunity opened within the 2016 tax year. If the opportunity was opened before the 2016 tax year, the number reflected will show the amount invested prior to 2016.
Capital contributed during the year: This number will reflect how much you invested in the opportunity during the current tax year.
Current year increase (decrease): This number is determined by subtracting the Interest expenses (Part III/Field 13) from the Interest income (Part III/Field 6). To find out more about Interest Expenses, please refer to the section titled “Other Deductions” below.
Withdrawals and distributions: This number will be the total amount of principal and net interest distributions for the current year. You may get this number by going to the Reports section of your portfolio and adding up all distributions effective in the 2016 tax year.
FAQ: I have added up all distributions from my Portfolio, but my calculation does not match my K1.
On some occasions, there are distributions that were initiated prior to January 1, but did not hit an investor’s bank account until after January 1, and thus would not have been included in this tax year. All Yieldstreet transaction pages have an “Effective Date” on the Transaction tab in your Portfolio. To get the number reflected on your K1, add up all transactions that occurred with the effective date during 2016. The remaining distributions will be reflected on your K1 for 2017.
Ending capital account: This number can be calculated by adding up all the above, minus the distributions. It will be carried over into your 2017 K1 and will be reflected as the Beginning Capital Account.
Interest income: The interest you earned during 2016 on any given opportunity. It can be calculated by going into your Transactions tab and adding up all interest transactions with the effective date during 2016.
Other deductions: In some cases, earlier Yieldstreet opportunities which were pre-funded by Yieldstreet, accumulated interest from the opportunity while it was being filled by investors. Yieldstreet effectively earned that interest. When the opportunity closes, Yieldstreet passes on that interest to the opportunity’s investors in the form of a investment interest deduction.
This communication and the information contained in this article are provided for general informational purposes only and should neither be construed nor intended to be a recommendation to purchase, sell or hold any security or otherwise to be investment, tax, financial, accounting, legal, regulatory or compliance advice. Any link to a third-party website (or article contained therein) is not an endorsement, authorization or representation of our affiliation with that third party (or article). We do not exercise control over third-party websites, and we are not responsible or liable for the accuracy, legality, appropriateness or any other aspect of such website (or article contained therein).
Sign up with your email address
Securely verify your identity and link a bank account
Verify your accreditation (if applicable) to access all of Yieldstreet’s offerings.
Our weekly podcast providing ideas about how to make money work for you and bring you closer to your dreams.
1 Past performance is no guarantee of future results. Any historical returns, expected returns, or probability projections may not reflect actual future performance. All securities involve risk and may result in significant losses.
2 Represents a net estimated, unrealized annualized internal rate of return (IRR) of your portfolio and is based by reference to the effective distribution dates and amounts to and from the investments, as well as any outstanding principal and accrued and unpaid interest as of the current date, after deduction of management fees and all other expenses charged to the investments.[read more]
3 "Annual interest" or "Annualized Return" represents an annual target rate of interest or annualized target return and "term" represents the estimated term of the investment. Such target interest or target returns and estimated term are projections of the interest or returns and or term and may ultimately not be achieved. Actual interest or returns and term may be materially different from such projections. This targeted interest or returns and estimated term are based on the underlying investments held by the applicable.
4 Reflects the initial quarterly distribution declared by the board of directors on February 6, 2020, which will be payable to stockholders of record as of June 10, 2020, and the initial offering price of $10 per share.
5 The Fund will cease investing and seek to liquidate the Fund's remaining portfolio no later than 48 months after the Fund's initial closing. It may take up to twelve months thereafter to fully monetize any remaining illiquid investments in the Fund's portfolio.
6 Represents the sum of the interest accrued in the statement period plus the interest paid in the statement period.
7 The internal rate of return ("IRR") represents an average net realized IRR with respect to all matured investments weighted by the investment size of each individual investment, made by private investment vehicles managed by YieldStreet Management, LLC from July 1, 2015 through and including Sept 6th, 2021, after deduction of management fees and all other expenses charged to investments.
8 Investors should carefully consider the investment objectives, risks, charges and expenses of the Yieldstreet Prism Fund before investing. The prospectus for the Yieldstreet Prism Fund contains this and other information about the Fund and can be obtained by emailing [email protected] or by referring to www.yieldstreetprismfund.com. The prospectus should be read carefully before investing in the Fund. Investments in the Fund are not bank deposits (and thus not insured by the FDIC or by any other federal governmental agency) and are not guaranteed by Yieldstreet or any other party.
No communication by YieldStreet Inc. or any of its affiliates (collectively, “Yieldstreet™”), through this website or any other medium, should be construed or is intended to be a recommendation to purchase, sell or hold any security or otherwise to be investment, tax, financial, accounting, legal, regulatory or compliance advice. Nothing on this website is intended as an offer to extend credit, an offer to purchase or sell securities or a solicitation of any securities transaction.
Any financial projections or returns shown on the website are estimated predictions of performance only, are hypothetical, are not based on actual investment results and are not guarantees of future results. Estimated projections do not represent or guarantee the actual results of any transaction, and no representation is made that any transaction will, or is likely to, achieve results or profits similar to those shown. In addition, other financial metrics and calculations shown on the website (including amounts of principal and interest repaid) have not been independently verified or audited and may differ from the actual financial metrics and calculations for any investment, which are contained in the investors’ portfolios. Any investment information contained herein has been secured from sources that Yieldstreet believes are reliable, but we make no representations or warranties as to the accuracy of such information and accept no liability therefor.
Private placement investments are NOT bank deposits (and thus NOT insured by the FDIC or by any other federal governmental agency), are NOT guaranteed by Yieldstreet or any other party, and MAY lose value. Neither the Securities and Exchange Commission nor any federal or state securities commission or regulatory authority has recommended or approved any investment or the accuracy or completeness of any of the information or materials provided by or through the website. Investors must be able to afford the loss of their entire investment.
Investments in private placements are speculative and involve a high degree of risk and those investors who cannot afford to lose their entire investment should not invest. Additionally, investors may receive illiquid and/or restricted securities that may be subject to holding period requirements and/or liquidity concerns. Investments in private placements are highly illiquid and those investors who cannot hold an investment for the long term (at least 5-7 years) should not invest.
Alternative investments should only be part of your overall investment portfolio. Further, the alternative investment portion of your portfolio should include a balanced portfolio of different alternative investments.
Articles or information from third-party media outside of this domain may discuss Yieldstreet or relate to information contained herein, but Yieldstreet does not approve and is not responsible for such content. Hyperlinks to third-party sites, or reproduction of third-party articles, do not constitute an approval or endorsement by Yieldstreet of the linked or reproduced content.
Investing in securities (the "Securities") listed on Yieldstreet™ pose risks, including but not limited to credit risk, interest rate risk, and the risk of losing some or all of the money you invest. Before investing you should: (1) conduct your own investigation and analysis; (2) carefully consider the investment and all related charges, expenses, uncertainties and risks, including all uncertainties and risks described in offering materials; and (3) consult with your own investment, tax, financial and legal advisors. Such Securities are only suitable for accredited investors who understand and willing and able to accept the high risks associated with private investments.
Investing in private placements requires long-term commitments, the ability to afford to lose the entire investment, and low liquidity needs. This website provides preliminary and general information about the Securities and is intended for initial reference purposes only. It does not summarize or compile all the applicable information. This website does not constitute an offer to sell or buy any securities. No offer or sale of any Securities will occur without the delivery of confidential offering materials and related documents. This information contained herein is qualified by and subject to more detailed information in the applicable offering materials. Yieldstreet™ is not registered as a broker-dealer. Yieldstreet™ does not make any representation or warranty to any prospective investor regarding the legality of an investment in any Yieldstreet Securities.
Banking services are provided by Evolve Bank & Trust, Member FDIC.
Investment advisory services are provided by YieldStreet Management, LLC, an investment advisor registered with the Securities and Exchange Commission.
Our site uses a third party service to match browser cookies to your mailing address. We then use another company to send special offers through the mail on our behalf. Our company never receives or stores any of this information and our third parties do not provide or sell this information to any other company or service.