Wayne Courreges IIIManaging Principal, CREI Partners, CREI Partners, CREI Partners, LLC · Disciplined Passive Real Estate. Transparent Leadership.

Investor Insight with Wayne - What Does a K-1 Show?

Name: Investor Insight with Wayne - What Does a K-1 Show?
Uploaded: 2026-08-18T16:15:36+00:00
Duration: 1 min 1 s
Channel: Wayne Courreges III
Description: In this brief video, Wayne Courreges III discusses a recent investor call about the tax implications of a $100,000 real‑estate investment. The investor’s…

18 Aug 2026 · 1 min

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1:01

In this brief video, Wayne Courreges III discusses a recent investor call about the tax implications of a $100,000 real‑estate investment. The investor’s K‑1 showed a $94,000 negative amount, which Wayne explains is a “paper loss” generated by depreciation rather than an actual loss of capital. He clarifies that such depreciation losses can be used to offset other passive income, thereby reducing the investor’s tax liability for the 2025 tax year. Wayne ends by inviting viewers with further questions to email him at wayne@creipartners.com.

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Just got home and had a call with an investor today that I wanted to share with you because I think it's a really important aspect to commercial real estate investing. So we talk about K-1s and how it's a tax document that provides paper losses. Well, he called me today. He did a $100,000 investment in a property that we bought last year, and on that K-1 it shows a negative $94,000 loss. And so he was wondering like, what happened to my investment? There's a $94,000 loss. And what I shared with him is that through depreciation, that loss is just a paper loss. He didn't really lose $94,000 in value. That loss on paper can offset other passive income. So passive losses offset passive income, which reduces his tax liability for 2025. So he was super excited about that. But if you want to know more or have any questions, you can email me at wayne@creipartners.com.