The K-1 Conundrum.
Alternative investments continue to grow in popularity among UHNW investors, providing diversification, mitigating market volatility and offering tax benefits in some cases.
One by-product of this dynamic is the significant operational burden that K-1 and other tax document management places on family offices, wealth managers, and accountants come tax season. This tracking exercise is an administrative pain point.
A single fund may have dozens of different K-1s across various states, and many UHNW investors have dozens, or even hundreds, of alternative investments.
Whether processing a single K-1 or many more, it’s important to be able to retrieve each unique K-1, store it safely and provide easy access to the client or designee.