Can someone explain exactly how I report a cash distribution to partners from a Sub-S partnership? It seems this is done on Line 19a of Form 1065 but I am not sure.

[Rick19744]

Well we need to get the facts straight first.  You are asking about a Sub S but then refer to a form 1065 which is filed for a partnership.
Or are you saying that your partnership owns an interest in an S corporation and received distributions from the S corp?

[cdj1941]

It is a family limited partnership which reports on Schedule K-1

[Rick19744]

You didn't answer my question.  Don't understand "Sub S partnership"

[cdj1941]

Because tax is not paid by the partnership but by each partner on their individual tax returns.

[Rick19744]

I understand how partnerships operate.  I want to understand why you are using the phrase "Sub-S partnership".  Please read my original response.
A Sub-S and a partnership are two different entities.

[cdj1941]

It is a partnership as I stated.  I am simply asking where and how how I enter distributions to partners in TurboTax form 1065. Forget the mention of Sub-S if you wish.

[Rick19744 · Accepted solution]

Cash distributions are reported on the 1065 Sch K line 19(a) and on each partner's K-1 box 19 Code A in proportion to the ownership.

They will also be reported in two other places depending on how you respond to form 1065 Sch B question.  If the answer to this question is "No", then they will also be reflected on Sch M-2 line 6(a) and also on the respective partner K-1 Section L.

If you respond "Yes" to the above question, then the distributions will not be reflected on the M-2 or K-1 Section L.  Those areas will be blank in accordance with the instructions.

[JohnGH]

Rick, I'm assuming that the schedule B question is #12.  I don't understand the question, what determines when one answers it Yes or No?