K-1 Distributions

[Bonnie]

I have one more question about an amount on the K-1. This K-1 was issued by a 1065. This is in block 19a for distributions. It looks by the Basis worksheet that this amount subtracts from the partner's basis so I am thinking it only affects that and doesn't need entered anywhere else. But since I have not done a return with an amount for a distribution, I want to be sure I understand what to do with this if it needs entered on the 1040. Thanks for your help in advance.

[BHoffman]

I have one more question about an amount on the K-1. This K-1 was issued by a 1065. This is in block 19a for distributions. It looks by the Basis worksheet that this amount subtracts from the partner's basis so I am thinking it only affects that and doesn't need entered anywhere else. But since I have not done a return with an amount for a distribution, I want to be sure I understand what to do with this if it needs entered on the 1040. Thanks for your help in advance.

You're right. Distributions decrease Basis. If the distribution is less than the Basis, then you can just enter the K1 just like it shows and should be good to go.

Distributions don't count as income unless they exceed the Basis.

Hope that helps.

[Bonnie]

[Distributions don't count as income unless they exceed the Basis.

Hope that helps

Yes, it does help, Thank you. I was thinking that was how it worked but wanted someone to verify it for me.