Jason Hinojosa

[Barrett Linburg @DallasAptGP]

K-1 season just started. Between now and early April, millions of investors will receive a form they do not understand from a partnership they invested in.

Most will forward it to their CPA without reading it. That is a mistake.

This is a plain-English guide to reading your K-1. No jargon. No accounting degree. Just the boxes that matter and what they mean for your money.

A Schedule K-1 is what you get when you own a piece of a partnership, an LLC, or a fund. These entities do not pay federal income tax. They pass everything through to you.

The income, the losses, the credits. You pay the tax on your personal return at your own rate.

The K-1 is how the IRS tells you what you owe.

The first thing most investors get wrong is the difference between income and distributions.

These are not the same thing.

Boxes 1 through 11 show your share of what the partnership earned or lost on paper. You owe tax on these amounts whether or not you received a check.

The IRS does not care if the cash hit your bank account. If the K-1 says you earned it, you owe it.

Box 19 shows the cash that went to your bank account. This is what you received.

Here is the part most investors miss.

In a well-run real estate partnership, Box 19 is often higher than the income boxes. That means you received more cash than you owe tax on. The gap is tax-free cash flow, created by depreciation.

If Box 2 shows a negative number, that is a paper loss. Your share of the depreciation. That loss can shield your other passive income from tax.

You collected real dollars. The IRS sees a loss. That is the engine of tax-efficient real estate.

Now go to Part II. Find Box I and Box L.

Box I shows Qualified Nonrecourse Financing. This is your share of the partnership's real estate debt. The IRS lets you count this toward your basis. That means you can take losses and receive cash distributions up to this amount without triggering a tax hit.

Box L tracks your tax basis. Think of it as your skin in the game. Starting in 2026, every K-1 must use the Tax Basis Method. This gives you a clear picture of how much room you have left to take future losses and distributions before you create a taxable event.

Most investors skip these two boxes. Do not. They tell you the health of your position in the deal.

Now the income boxes.

Box 1 is ordinary business income. For limited partners, this is almost always passive income from operations.

Box 2 is net rental real estate income. This is where depreciation lives. A negative number here is a good sign. It means the depreciation write-offs exceeded the rental income. That paper loss offsets other passive income on your return.

Box 9c is Unrecaptured Section 1250 gain. If the partnership sold a property, this is the IRS clawing back the depreciation you took over the years. It is taxed at up to 25%. Not fun, but important to understand.

That covers the basics. If you stopped here, you already know more about your K-1 than most investors.

But there is one more section. And this is where it gets interesting.

Go to Part III. Find these boxes.

Box 8. Short-term capital gains.
Box 9a. Long-term capital gains.
Box 9b. Collectibles gains.
Box 10. Net Section 1231 gain.

If any of those show a positive number, you are not just looking at a tax bill.

You are looking at an eligible capital gain. And eligible capital gains unlock the most tax-advantaged structure for real estate investing that exists in the tax code today.

The Opportunity Zone.

You can take those gains and roll them into a Qualified Opportunity Zone fund. In exchange, three things happen.

You defer the tax on your original gain. A 2025 gain that would create a bill in April 2026 gets pushed to April 2027. Your capital stays working for an extra year.

You invest in real estate that generates bonus depreciation. Those write-offs offset other passive income on your return before the building even stabilizes.

And after ten years, you sell the OZ investment and pay zero federal capital gains tax on the appreciation. Zero depreciation recapture. Every dollar of profit you built over that decade is yours.

No other structure does all three. Not a 1031 exchange. Not a cost segregation alone. Not a charitable trust.

One more thing most investors do not know.

Your K-1 gain has a different deadline than a stock sale. As a limited partner, you can elect to start your 180-day clock from the partnership's filing deadline on March 15. That means a 2025 K-1 gain could give you until September 2026 to invest.

So when your K-1 arrives this month, do not just forward it and forget it. Open it. Read it. Now you know what you are looking at.

And if Boxes 8, 9, or 10 show a positive number, you have a decision to make.

Pay the tax and move on.

Or put that capital to work in a structure designed to build tax-free wealth for the next decade.

[Hedera @hedera]

🏛️ Chairman @SECPaulSAtkins @SECGov just flipped the switch. Welcome, Project Crypto 🇺🇸

A clearer path is taking shape for builders, investors, and innovators. Now’s the time to engage, contribute, and help shape what comes next. @WhiteHouse

https://t.co/muWU4fXgRK

[Hedera @hedera]

Discover the tokenization possibilities on Hedera with strategies - leveraging HTS, ERC standards on Hedera's EVM, and hybrid setups integrating smart contracts and HTS.

Join the Hello Future Hackathon Trilogy – $550K in prizes @AngelHack @hashgraph https://t.co/yDDREvg7Hi

[Unity for Games @unitygames]

🌎 Revolutionizing GIS with Real-Time 3D Simulation

Unity and Esri are transforming how industries harness GIS technology. By combining Esri’s ArcGIS SDK with Unity’s real-time 3D engine, static geospatial data becomes dynamic—brought to life through interactive simulation.

From urban planning to emergency response, professionals can now visualize solutions before challenges arise. Think: redesigning traffic flow, optimizing infrastructure, or planning disaster responses—all in immersive, data-driven environments.

Key benefits include:
✅ Smarter urban planning: Predict traffic patterns and pedestrian behavior in living 3D models
✅ Streamlined infrastructure management: Monitor assets in real time and reduce maintenance costs
✅ Enhanced emergency response: Simulate disaster scenarios and build faster, safer response strategies

This innovation isn’t just reshaping workflows—it’s unlocking a smarter, more responsive world.

📖 See the full story and live demo
👉 https://t.co/4qPOxVEnLz

#GISInnovation #3DSimulation #SmartCities

[Hedera @hedera]

Join us for the July Hedera Tech Community Call with @itsbrandond & @ed__marquez

Learn how to query Hedera data with @hgraph, explore the new @WalletConnect integration via @reown_, and get updates from the Hello Future Hackathon.

Build the future. https://t.co/P9uQH1ANKk

[Hedera @hedera]

Build AI-powered agents on Hedera using AgentKit, Eliza & OpenConvAI

Join the Hello Future Hackathon Trilogy: Chapter 1 Origins - live now with $150K in prizes across five tracks. @AngelHack @hashgraph https://t.co/1kI58vPr5I

[AngelHack @AngelHack]

Here’s a quick snippet of what went down at yesterday’s Hello Future: Origins Opening Ceremony 🎉

From exciting announcements to insights on what’s ahead, it was the perfect way to kick off the first chapter of the Hello Future Hackathon Trilogy. 🎙️ In this clip, catch Ed Marquez, Head of Developer Relations at @hashgraph, as he sets the stage with an inspiring welcome address to kick off the hackathon journey.

🎬 Missed the full ceremony? Don’t worry — we’ve got you covered.
Watch it all here: https://t.co/ZbF4Bj8ftO

And you’re definitely not too late to the party.
Discover more and start building with us: https://t.co/rgmJNAaTIo

[Hedera @hedera]

Most chains let a single node reorder transactions, creating opportunities for MEV and unfair advantages.

Hedera does it differently. No leaders. No manipulation. Just fair ordering for everyone🤝

Start building on trusted infrastructure: https://t.co/VCzFnkoCZT
Learn more: https://t.co/dUV3bC9m36

[KARATE COMBAT @KarateCombat]

Aline Pereira is about to fight for her first title shot inside The Pit against a veteran in the sport, Fani Peloumpi.

Aline’s skills comes from her blood, while Peloumpi’s comes from experience.

#KC56 | SAT 7/19 | 5pm, ET

[Hedera @hedera]

Big moves this month across the Hedera ecosystem 🌐

From global supply chains to AI governance to Capitol Hill - let’s dive into the June 'Hedera Highlights' newsletter. 👇 🧵

[Hedera @hedera]

Sr. Product Manager @hashgraph @TMCC_Patches shares what he sees as the most exciting developments happening on the Hedera network, including advancements in the intersection of blockchain and AI, DeFi, data integrity, and more. 👇

[Neuron @Neuron_World]

Do you agree with James?

[Hedera @hedera]

🛠️ Get started with Stablecoin Studio: an open-source SDK that simplifies the process of issuing stablecoins on the Hedera network.

All-in-one toolkit. Easy deployment. Full operational control.

➡️ https://t.co/oB4ndGOpeb

[acoer @acoerco]

🧬 We are delighted to announce our partnership with @AndromedaProt to deploy a white-labeled version of Pulsar, their AI onboarding framework!

Together, we’re simplifying how users engage with decentralized health tools, starting with our rare disease work.

🔗 Learn more: https://t.co/vOddFRWvoW

#Web3 #AI #Healthcare #DataIntegrity #RareDiseases #HealthTech

[SpaceX @SpaceX]

On Wednesday, June 18 at approximately 11 p.m. CT, the Starship preparing for the tenth flight test experienced a major anomaly while on a test stand at Starbase. A safety clear area around the site was maintained throughout the operation and all personnel are safe and accounted for.
Our Starbase team is actively working to safe the test site and the immediate surrounding area in conjunction with local officials. There are no hazards to residents in surrounding communities, and we ask that individuals do not attempt to approach the area while safing operations continue

[Rowan Cheung @rowancheung]

AI NEWS: OpenAI just launched a podcast where CEO Sam Altman shared GPT-5's launch timeline

Plus, more news from Midjourney, Google, MiniMax, Higgsfield, Hugging Face, and MIT.

Here's everything you need to know:

[Hedera @hedera]

From tokenized assets to AI-powered wallets. See how $1.1B soil-carbon assets are onboarding via @dovuofficial, how @hashpack is adding an AI assistant, and why RWAs & AI converge on @hedera.

With @may_hashpack @irfonwatkins @ed__marquez @GenzioCo https://t.co/OFYuRXpAvl

[Neuron @Neuron_World]

🧵AI agents just became super-intelligent

Neuron just announced a major upgrade to @AnthropicAI's MCP, enabling AI agents to discover, access & pay for premium data using @USDC on @hedera

Watch an agent buy @SkyX_Network & @roam_network data and respond in real-time 📽️👇

[Hedera @hedera]

New era. New tools. Big AI moves.

Here’s everything that’s been happening across Hedera and the ecosystem this month—from product launches and leadership shifts to community momentum and media buzz.

Let’s dive in 🧵👇

[Brian Maierhofer @brianmaierhofer]

Parasympathetic Activation is the best way to rewire your brain from toxic habits, heal stored trauma, and restore your nervous system to optimal health.

Here’s what it is and how to do it:🧵