Any event or transaction that results in a tax consequence for the party who executes the transaction is considered a taxable event. Common examples of taxable events for an SPV include receiving interest and dividends, selling securities for a gain, and exercising options. Unrealized gains on an investment do not qualify as a taxable event. When an SPV has a taxable event during the calendar year, they are required to file a federal 1065 tax return with the IRS and share the corresponding K1s with the SPV investors. When an SPV does not have a taxable event in a calendar year they are not required to file a 1065 tax return. Most single asset SPVs have several years where there are no taxable events.