I received K-1 on joint investment with my girlfriend, who gets to report the K-1 and can we split it 50%?

[Sam1977]

My girlfriend and I jointly invested in a real estate investment fund.   Although it is joinly own 50/50, the entity asked for only 1 social security number and only one K1 was issued.   Both of our names are on the K1, showing it is a joint account, but her social security number is on the K-1.    

Do the person that was issued the K-1 fully report all the income and expenses on the K-1, or should we split the K-1 evently and report 50% on my return and 50% on her return?

[Critter-3]

The simplest way is to report it only on the return whose SS# was listed on the K-1 form.  If you want to split it up and enter each person's portion on their return then you chance the IRS sending a CP2000 notice in a couple of years for the missing income.  So if you can agree you can do it that way ... I would complete the entire return without the K-1 form and note the refund or balance due then add the K-1 and again note the refund or bal due.... then figure out how you want to handle the 1/2 of the difference between the 2 of you if you keep everything separate or just let it be.   For non married taxpayers, if you want to invest in something and want the income listed in both of your SS#s then you need to set up a partnership that would recieve the one K-1 form then split it into 2 K-1 forms.

[Mike9241]

Technically you got a partnership. so the original K-1 should have been issued to it. then that partnership issues a k-1 to each of you.

If the IRS deems that there is a partnership, the return for 2021 it's late and late filing penalties would be about $400/month for each month late for up to 12 months. it's too late to make the election for 2021 since it must be made with a timely filed return. 

A qualifying syndicate, pool, joint venture, or similar organization may elect under section 761(a) not to be treated as a partnership for federal income tax purposes and will not be required to file Form 1065 except for the year of election. 

(a)Partnership
For purposes of this subtitle, the term “partnership” includes a syndicate, group, pool, joint venture, .... Under regulations ...all the members .... may exclude the organization from the application of subchapter K, if it is availed of—
(1) for investment purposes only and not for the active conduct of a business,

the election 

The partnership return must be filed not later than the time prescribed by paragraph (e) of § 1.6031-1 (including extensions thereof) for filing the partnership return with respect to the first taxable year for which exclusion from subchapter K is desired. Such partnership return shall contain, in lieu of the information required by Form 1065 only the name or other identification and the address of the organization together with information on the return, or in the statement attached to the return, showing the names, addresses, and identification numbers of all the members of the organization; a statement that the organization qualifies under IRC 761(a)(1); a statement that all of the members of the organization elect that it be excluded from all of subchapter K; and a statement indicating where a copy of the agreement under which the organization operates is available (or if the agreement is oral, from whom the provisions of the agreement may be obtained).

[Sam1977]

Thank you.  The reason I thought about splitting it is because the income of each of us is quite different.  It is more beneficial to have the income/losses on my return than on hers.  However she is the one that has the ss# listed on the k1.     If we decide to split it, we would need to attach a written statement with the return explain where the other half of the income is, correct?