Why does my K-1 show no income or loss?

Most of our SPVs are holding entities structured simply to pass through investment exposure without generating day-to-day operating income or expenses. Because of this, it is very common for your K-1 to show no taxable income or loss in a given year.

Importantly, unrealized gains or losses (changes in the estimated value of the underlying company) are not taxable events and are not reported as income. You typically will only see income or loss reported in the year of a liquidity event, such as an acquisition, IPO, or dissolution of the underlying asset. You may, however, still see reportable items like capital contributions or distributions reflected on your K-1, even if there is zero net income.