We aim to send out K-1 forms to all Craft Pod investors by mid-March each year (or earlier if possible). The K-1 is the tax document that reports your share of the partnership’s income, deductions, and credits for the previous calendar year.
On your K-1, you’ll see various line items that reflect the Pod’s financial activity allocated to you. This can include:
Income or Loss from Operations: e.g., charter rental income minus expenses.
Depreciation Deductions: Your share of any tax depreciation we took on the aircraft (often a significant deduction).
Interest or Dividend Income: If the Pod held any securities or cash that earned interest.
Capital Gains or Losses: If any assets were sold during the year (like if we sold a plane or some stock investments in the portfolio).
Credits: Any tax credits that might apply (for example, if there were specific aviation-related credits, though those are less common).
The K-1 informs you and the IRS what taxable events happened within the partnership on your behalf. You’ll use it to prepare your tax return, applying those numbers to your tax forms. We work with our accountants to get the information to you as quickly as possible, while ensuring their accuracy.