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Level 1
June 3, 2019
Solved

Is a K1 distribution the same as a disposal of a portion of my interest in a partnership?

  • June 3, 2019
  • 2 replies
  • 36 views
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Best answer by MinhT1

No, a K-1 distribution is not a disposal of a portion of your interest in the partnership. Generally, it is distribution of profits already taxed through your Schedule K-1. Your share of ownership should remain the same.

2 replies

MinhT1Answer
Level 15
June 3, 2019

No, a K-1 distribution is not a disposal of a portion of your interest in the partnership. Generally, it is distribution of profits already taxed through your Schedule K-1. Your share of ownership should remain the same.

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Alumni - Champ
June 3, 2019
Very commonly, though, it does change your basis in the partnership.