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cdj1941
New Member

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.

 
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Accepted Solutions
Rick19744
Level 12

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.

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.

*A reminder that posts in a forum such as this do not constitute tax advice.*

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8 Replies
Rick19744
Level 12

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.

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?
*A reminder that posts in a forum such as this do not constitute tax advice.*
cdj1941
New Member

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.

It is a family limited partnership which reports on Schedule K-1
Rick19744
Level 12

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.

You didn't answer my question.  Don't understand "Sub S partnership"
*A reminder that posts in a forum such as this do not constitute tax advice.*
cdj1941
New Member

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.

Because tax is not paid by the partnership but by each partner on their individual tax returns.
Rick19744
Level 12

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.

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.
*A reminder that posts in a forum such as this do not constitute tax advice.*
cdj1941
New Member

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.

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
Level 12

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.

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.

*A reminder that posts in a forum such as this do not constitute tax advice.*
JohnGH
Returning Member

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.

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?

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