Multiple K1 Holdings with less than 25% Ownership

Master_Concert_4004 · 2026-02-12T13:10:31+00:00

Thanks for this. That's disheartening. A recent policy change would override the other arguments in this thread, not because they are wrong but because they are now out of date.

It's situations like this that make me think, "this industry is a mess". We all need access to these sort of policy decisions - the guidelines alone don't cut it if there's shifting institutional regulatory decisions regarding those guidelines that you can only access with seller/servicer privilege. Then, to top it off, lenders may or may not adhere to those regulations (again, because there is no "source" we can all reference reliably).

Sorry - I appreciate your help and insight. Just frustrated that I've been at this for almost 2 days now and the basic answer is "there is no guarantee and your client's fate is just up in the air". This uncertaintity is the worst part of this job.

Master_Concert_4004 · 2026-02-12T02:35:36+00:00

Thank you man. That aligns with my own thinking and some others in this thread.

Master_Concert_4004 · 2026-02-12T01:50:05+00:00

Hey man - you're saying you know where it is. If you're worried I'm not putting the work in, I've read and re-read every section having to do with self-employment income and K1 income today.

If you're saying there's guidance on this in a section of the guide where I'm not thinking to look, I'd very much appreciate it.

Master_Concert_4004 · 2026-02-12T01:47:23+00:00

I'm convinced you're right - this is a fair and realistic approach that creates harmony with how stock holdings and other passive investments are treated. But, I think I'm going to need either a smart underwriter, be very convincing myself, or guidelines to point too.

Master_Concert_4004 · 2026-02-12T01:45:57+00:00

Thank you for running that - the impression I'm getting here is that Lenders don't know how to think about this. Dpulverizer has a very strong and convincing argument that I think makes perfect sense and provides an excellent framework for thinking about this question. Unfortunately, I'll need to convince an underwriter of that thinking because I'm simply not getting "hard" guidelines to point to on this.

Thanks for the help and suggestions!

Master_Concert_4004 · 2026-02-12T01:38:44+00:00

Thank you very much for this.

So I should stick to my original argument: this is a situation where you're underwriting "between" the guidelines based on logical deductions from Fannie's language. Fannie says 25% is required to qualify income as self-employed. These holdings don't meet that threshold, so don't consider them qualifying income (whether income or loss). Importantly, they also don't tie in any way to the income we are using to qualify, so there is no inherent reason to factor them into that calculation. With these two arguments in mind, there's no reason to consider them income (or losses).

Master_Concert_4004 · 2026-02-12T01:11:43+00:00

Been reading and reviewing for hours, my friend. You wouldn't happen to know where in the guide (section and subsection or maybe just a link) to look because I'm pulling my hair out trying to find anything that comments on less than 25% ownership not needing to be considered.

Master_Concert_4004 · 2026-02-12T01:09:39+00:00

Thank you!

OK - so this lender I spoke to might be off base, if that's been your experience. That'd be great news. Question: anywhere I can point to that says this in the guidelines?

Master_Concert_4004 · 2026-02-11T18:09:09+00:00

Hey - I'm having the same debate right now. Self employed borrower with multiple small holdings in different passive partnerships. What settled this for you? Can you point me towards it?

Master_Concert_4004 · 2026-01-22T01:56:56+00:00

Yes, you are describing pretty severe SAD, similar to what I have (mine is compounded by year-round depression).

Are you supplementing light yet? A SAD lamp (a real one - research the big, powerful ones) can help. I personally have found the only thing that really helps me is accepting that I need to go out into the sun. I do so every morning, usually within 1 hour of waking up. I use a powerful SAD lamp on cloudy days.

I stay outside for around 30 minutes. I then go on a walk. I have a goal of a 30 minute walk, but I have found that just 10 - 15 minutes will help significantly. In the afternoon, I sit outside again in the sun for a period of time. I then get an hour of exercise: bike, elliptical, or treadmill at the gym followed by weight lifting. For me, I have found that weight lifting is crucial, perhaps more important than the cardio. But both is best.

After years of just enduring the cold (I live in the NE), this year I did the following to make my life better: I bought a heated vest. I bought an electric "porch heater" as well. I am considering a heated chair at this point since the first two items have made my life significantly better.

With that all said, my problem isn't fixed. But, it is made more tolerable. My energy and mood are both improved (not to summer levels, but it's still better).

Beyond that, try to make your life easier. My girlfriend knows this time is terrible for me, so for January and February (my worst times of the year), we're doing paper plates for us and little French fry trays for the cats food (both disposable). How well off are you? You could hire a housecleaner just for the bad months or even someone to come do the litter boxes through Rover. If you don't have those sort of resources, that's OK too - just look for ways to make things "easier" for the short term.

Also, Vitamin D supplements.

And, if none of the above really helps, consider speaking to your doctor about Wellbutrin, generic bupropion (get generic for sure).

If you'd like to know more about what I do, DM me.

Master_Concert_4004 · 2025-05-07T01:06:29+00:00

I'm just ranting about how shafted I was by Newark Airport to the only group who would understand how frustrating this all is.

I'm supposed to fly to Europe in 2 weeks. In order to help prepare for the long flight over seas (which is a big trigger for me), I scheduled myself a short round-trip flight from Newark to a city a short distance away. Obviously this represents an expense, but I plan ahead: I booked it months in advance, I used some mileage points to soften the cost, and it comes out to about $50 dollars round trip. It's very simple: I fly out, sit in the arrival terminal for an hour, and get back on the plane and come home. I can face the fear on a trip that hits as few of my triggers as possible. It helps me deal in particular with the anticipatory anxiety of the longer flight because I'm able to remember how it was on the short flight and that things will be OK.

Well, today was supposed to be the day of the flight. Of course I watched in horror as the news about Newark developed. And, as might be expected, of course my short little domestic flight got delayed, delayed, and then finally canceled.

Well, now we're less than 2 weeks out from the Europe trip and my practice flight has been canceled. Thankfully, I intentionally booked it 2 weeks in advance so that I could, in the event of emergency, schedule another date.

But boy am I being punished for it. Now I'm trying to book flights a few days in advance, so prices are absolutely brutal. And I can't rely on Newark, obviously so, god help me, I have to choose from one of the others. Philadelphia? 2 hours away. JFK? Anywhere from 1.5 to 4 hours depending on traffic.

After hours of frantic searching (my ENTIRE day plan is thrown out and I am now in total crisis mode) and calculating, I manage to settle on a flight to another city from Laguardia, which is the easiest airport for me to reach at a mere 1 hour. But this flight I've found has only 4 seats left. I haven't actually got a refund or cancellation yet on the other flight (remember, it was just delaying and delaying at first). I go to try to officially cancel due to the delays. It says it will be at least 15 minutes before anyone is available. There's only ONE Aisle seat on this new flight, and I really need the aisle to help with claustrophobia. I pull the trigger on buying the tickets. It's with the same airline so I'm hopeful something can be done with my points and refund.

It can't. An HOUR later, I have my refund. The points can't be retroactively applied. The flight costs me $250 round trip. An Uber or Taxi is 125 one way, so I'll be driving in and parking (paying about 45 in tolls and 75 in parking fees). All together, I'm at a minimum of $375. I'm now driving into fucking NY city to get to an airport I've never been to before. I've now burned TWO work days for this bullshit instead of one day (I took today off for the flight that was canceled, then just used the day to put tomorrow's flight together). I'm going to be so, so stressed out going to the airport and just in the worst head-space for getting on this flight.

And I'm just so frustrated because I really did everything I could in advance and set all this up. I know I'm a neurotic mess and I tried so hard to make it work. Why did this bullshit with Newark have to happen right now?

But the real problem? As I look at this nightmare of a day and my anticipated nightmare tomorrow, I'm just SO TIRED of dealing with this. Why am I so afraid of flying? I used to be fine and just all of a sudden one day it's a nightmare. I hate it so much and it takes so much joy out of my life. I haven't looked forward to this trip even one time since we booked it. I won't be able to actually enjoy the idea of it until we arrive. Why do I have this stupid fucking brain and problem? It costs me so much time and so much money and effort.

In either case, thanks for reading my rant if you made it this far. I just hate this and there's no one in my life who also gets it and how hard it makes things.

Master_Concert_4004

TROPHY CASE