Typically, the date you paid for your shares and the date on which they are issued to you are different. We will send you a K-1 for the year in which the shares had been issued to you.
So if you invested in a painting and did not receive a K-1, the closing and issuance of your shares took place in the subsequent tax year from when you paid.
Example:
- You pay for your order on December 15, 2022 for Masterworks XXX.
- Masterworks XXX receives your cash in a segregated bank account the same day.
- Masterworks XXX continues its share offering and completes raising capital from investors on January 5, 2023.
- Masterworks XXX then closes on all capital raised and issues shares to all investors on January 10, 2023.
- In this case, you would receive a K-1 from Masterworks XXX for the 2023 tax year even though you made payment in 2022.
Remember!
The price at which Masterworks acquires a painting in an offering is fixed for all investors at offering launch, so there is no economic difference to investors from period between when payment for shares is made and when the shares are issued.
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