K1 related questions

[sdtaxnoob]

I have 2 questions regarding K1.

1. My investment is with a private company so I buy the investment via a private management company is always very late in providing the K1 form (september to october).  It's a long term investment that will take many years before I would see any gain or do any transaction.  May I file my tax without the K1 and amend it later?
2. The same private management company charges me about 5-10% in fee each year, how do I record this fee so that it will be counted toward the cost basis when I sell my investment.  Would the K1 included these fee from the private management company?

[PatriciaV]

Yes, if you expect to receive Schedule K-1 from your investment late in the year, you may file your return before the April deadline and amend it when the K-1 arrives. Your other option is to request an extension of time to file (due April 15), which gives you another six months to complete and file your return.

The management fee is an investment expense rather than an adjustment to your basis in the partnership. Investment expenses are a miscellaneous itemized deduction. This means they are deductible only if and to the extent they, along with your other miscellaneous deductions (if any), exceed 2% of your adjusted gross income.

If the management fee is reported on Schedule K-1 (highly unlikely), then you would not need to record this expense. Any reduction in your basis would be included in the allocated income/loss on the K-1.