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- RetirementAdd private markets to an IRA
Understanding your Schedule K1 (Form 1065)
With the tax season coming soon, many of our accredited investors may be in the process of submitting their tax documents. Willow Wealth distributes Schedule K1, and to answer any questions investors may have about filling them out, we’ve compiled a breakdown of the form below. In this article you can find out what numbers on your Schedule K1 mean, as well as information on where you can find them in your online investment portfolio. These are based on the most recent Schedule K1 form – 2025 Schedule K-1 (Form 1065).
Part I deals with the Partnership information, which will be completed by Willow Wealth to identify the individual SPV name and tax identification number, depending on the investment opportunity that this K-1 is for.
Part II deals with the Partner, or the investor. This part contains information about the investor’s participation in the opportunity.
Section J
Capital Percentages – This section reflects your beginning and ending ownership percentage in the fund for the current tax year, which represents your committed capital over the total committed capital raised by the fund. 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, 2025), your Ending Capital will be 0%.
Section L
Beginning capital amount: This figure represents your beginning tax capital in the fund, which may vary from your beginning book capital in the fund.
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 is your current year taxable income/(loss), plus other certain items such as, tax-exempt income and non-deductible expenses.
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 2025 tax year. This amount reflects all cash payments received by you during the current taxable 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 Willow Wealth transaction pages have a “Cleared Date” on the Transaction tab in your Portfolio. To get the number reflected on your K-1, add up all the transactions that occurred with a clear date during 2025.
Ending capital account: This number can be calculated by adding up all the above, minus the distributions. It will be carried over into your followingyour following year K-1 and will be reflected as the Beginning Capital Account.
Part III
Interest income: This is your pro-rate share of interest earned by the fund for the current year.
Interest Expense: In some cases, earlier Willow Wealth opportunities which were pre-funded by Willow Wealth, accumulated interest from the opportunity while it was being filled by investors. Willow Wealth effectively accrued that interest. When the opportunity closes, Willow Wealth passes on that interest to the opportunity’s investors in the form of an investment interest expense deduction (Box 13H).
Other deductions: There are other expenses incurred by the fund which need to flow through to the investors of the fund. These expenses are reflected as “other deductions”. An example of this is certain portfolio deductions (i.e., management fee expenses) in Box 13W on the K-1.
What is Schedule K1 (Form 1065)?
The Schedule K-1 (Form 1065), sometimes called the Form K-1065, is a tax document that reports each partner’s share of a partnership’s income, deductions and credits. It breaks down your individual share of the partnership’s financial activities, including income, deductions, and credits. This form also offers a detailed account of your portion of the partnership’s profits, losses, and various tax-related items.
So, if a partnership makes $200,000 and you have 30 per cent of a partnership, then your K-1 would report $60,000 as your share of the income. The Schedule K-1 would also list your share of the deductions, credits and all other tax items so those details are properly reported on your individual tax return.
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).
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View Willow 360 Managed Portfolios disclosures
View Willow 360 Managed Portfolios disclosures
Investments made on your behalf in a Willow 360 Managed Portfolio are highly speculative and entail substantial risks, including the fact that such investments are illiquid and subject to significant restrictions on transferability and redemption and that all or a substantial amount of the principal invested may be lost. No amount of diversification can eliminate such risks. Investment strategies such as the ones offered for Managed Portfolios may not be suitable for all investors, and potential investors must make an independent assessment of the appropriateness of any investment in light of their own objectives and circumstances.
Willow Wealth Inc. is the direct owner of Willow Asset Management LLC, which is an SEC-registered investment adviser that manages the Willow Wealth funds and provides investment advice to “retail investors” through “Willow 360 Managed Portfolios.”
Willow Wealth Inc. has an engagement with Atomic Brokerage LLC (“Atomic Brokerage”), a registered broker-dealer and member of FINRA and SIPC, to bring you the opportunity to open a brokerage account. Brokerage services for customers of Willow Wealth Inc.are provided by Atomic Brokerage. Custodial and clearing services are provided to Atomic Brokerage by Pershing LLC. Technology services may be provided by AtomicVest. For more details about Atomic Brokerage, please see the Form CRS, Atomic Brokerage General Disclosures, and the Privacy Policy. Check the background of Atomic Brokerage on FINRA’s BrokerCheck. Fees such as regulatory fees, transaction fees, fund expenses, brokerage commissions and services fees may apply to your brokerage account.
Neither Atomic Brokerage, or Willow Asset Management LLC nor any of their affiliates, is a bank. Investments in securities are Not FDIC insured, Not Bank Guaranteed, and May Lose Value. Investing involves risk, including the possible loss of principal. Before investing, consider your investment objectives and the fees and expenses charged by Atomic Brokerage and Willow Asset Management LLC.
Willow Wealth Inc. is also the indirect owner of Willow Wealth Markets LLC, which is a broker-dealer registered with the SEC and a member of FINRA and SIPC. Despite its affiliation with Willow Asset Management LLC, Willow Wealth Markets LLC does not solicit, sell, recommend, or place interests in any underlying funds in the Managed Portfolios. All trades with respect to underlying funds in the Managed Portfolios will be effected through Atomic Brokerage LLC, an SEC-registered broker-dealer, with Pershing LLC acting as the custodian as appropriate.
View important footnotes related to performance, returns, duration, and other information about Willow Wealth investments
View important footnotes related to performance, returns, duration, and other information about Willow Wealth investments
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.
3 "Annual interest," "Annualized Return" or "Target Returns" represents a projected annual target rate of interest or annualized target return, and not returns or interest actually obtained by fund investors. “Term" represents the estimated term of the investment; the term of the fund is generally at the discretion of the fund’s manager, and may exceed the estimated term by a significant amount of time. Unless otherwise specified on the fund's offering page, target interest or returns are based on an analysis performed by Willow Wealth of the potential inflows and outflows related to the transactions in which the strategy or fund has engaged and/or is anticipated to engage in over the estimated term of the fund. There is no guarantee that targeted interest or returns will be realized or achieved or that an investment will be successful. Actual performance may deviate from these expectations materially, including due to market or economic factors, portfolio management decisions, modelling error, or other reasons.
4 Reflects the annualized distribution rate that is calculated by taking the most recent quarterly distribution approved by the Fund's Board of Directors and dividing it by prior quarter-end NAV and annualizing it. The Fund’s distribution may exceed its earnings. Therefore, a portion of the Fund’s distribution may be a return of the money you originally invested and represent a return of capital to you for tax purposes.
5 Represents the sum of the interest accrued in the statement period plus the interest paid in the statement period.
6 The internal rate of return ("IRR") represents an average net realized IRR with respect to all matured investments, excluding our Short Term Notes and Structured Notes programs, weighted by the investment size of each individual investment, made by private investment vehicles managed by Willow Asset Management LLCfrom July 1, 2015 through and including March 31, 2025, after deduction of management fees and all other expenses charged to investments.
7 Investors should carefully consider the investment objectives, risks, charges and expenses of the Yieldstreet Alternative Income Fund before investing. The prospectus for the Yieldstreet Alternative Income Fund contains this and other information about the Fund and can be obtained by contacting us or by referring to www.yieldstreetalternativeincomefund.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 Willow Wealth or any other party.
8 You should not construe any information provided here as investment advice or a recommendation, endorsement or solicitation to buy any securities offered on Willow Wealth. The information provided here is of a general nature and does not address the circumstances of any particular individual or entity. You alone assume the sole responsibility of evaluating the merits and risks associated with the use of this information before making any decisions based on such information.
9 Statistics as of the most recent month end.
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No communication by Willow Wealth Inc. or any of its affiliates (collectively, “Willow Wealth™”), 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, except for specific investment advice that may be provided by Willow Asset Management LLCpursuant to a written advisory agreement between such entity and the recipient. 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 Willow Wealth believes are reliable, but we make no representations or warranties as to the accuracy of such information and accept no liability therefore.
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 Willow Wealth 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 discussWillow Wealth or relate to information contained herein, but Willow Wealth 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 byWillow Wealth of the linked or reproduced content.
Investing in securities (the "Securities") listed on Willow Wealth™ 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 are 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.
Willow Wealth Inc. is the direct owner of Willow Asset Management LLC, which is an SEC-registered investment adviser that manages the Willow Wealth funds and provides investment advice to the Willow Wealth funds, and in certain cases, to retail investors.Willow Wealth Markets LLC is an indirect subsidiary of Willow Wealth Inc..Willow Wealth Markets LLC is a broker-dealer registered with the Securities and Exchange Commission (“SEC”) and a member of the Financial Industry Regulatory Authority (“FINRA”) and the Securities Investor Protection Corporation (“SIPC”). Information on all FINRA registered broker-dealers can be found on FINRA’s BrokerCheck. Despite its affiliation with Willow Asset Management LLC, Willow Wealth Markets LLC has no role in the investment advisory services received by Willow Wealth clients.
Willow Wealth is not a bank. Certain services are offered through Plaid, Eisen and Footprint and none of such entities is affiliated with Willow Wealth. By using the services offered by any of these entities you acknowledge and accept their respective disclosures and agreements, as applicable.
Investment advisory services are only provided to clients of Willow Asset Management LLC, an investment advisor registered with the Securities and Exchange Commission, pursuant to a written advisory agreement.
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