K1 - not all distributed in same year.....

Forum|Forum|3 years ago
April 3, 2023
1 reply
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I have a K1 from last year (2021) - I was an equity holder and my company was sold. The basis was zero, and I paid tax on my whole capital gain in Box 9a. I received a distribution in Box 19 of about 80% of my gain.

The remaining 20% was paid in 2022. I already paid for the gain last year, right? So the 20% is just "income?"

The K1 for 2022 is delayed and I'm trying to file an accurate return with an Extension.

Mike9241

Level 15

partnership distributions are tax-free as long as you have a tax basis. they reduce it. but once tax basis is reduced to zero any additional are taxed generally as long-term capital gains

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so if you had zero tax basis at the start of the year; contributed nothing; had net income of say $100; and received cash of $80; you would have a tax basis at the end of the year of $20. so if no income/loss in 2022 and you receive $20 it's tax-free

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was the k-1 marked final in 2021 then you won't get one for 2022

Mike9241