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New Member
posted Jun 6, 2019 2:02:39 AM

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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1 Best answer
Level 13
Jun 6, 2019 2:02:52 AM

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.

8 Replies
Level 13
Jun 6, 2019 2:02:40 AM

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?

New Member
Jun 6, 2019 2:02:42 AM

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

Level 13
Jun 6, 2019 2:02:45 AM

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

New Member
Jun 6, 2019 2:02:46 AM

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

Level 13
Jun 6, 2019 2:02:47 AM

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.

New Member
Jun 6, 2019 2:02:49 AM

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.

Level 13
Jun 6, 2019 2:02:52 AM

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.

Returning Member
Feb 7, 2020 4:52:22 PM

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?