Do I have to fill out line 19a on schedule k form 1065- distribution of cash and marketable securities for a multimember llc?

[herbcraftorders]

Should the amount distributed be less than or equal to the 2016 ordinary business income  Is is ok if the distribution amount is greater than the ordinary business income?

[Rick19744 · Accepted solution]

This line has nothing to do with how much money the LLC made.  This line must represent actual distributions paid out to each member.

Each member should also be maintaining a basis schedule of their investment in the LLC.  This schedule must be updated annually as it provides the necessary information such as whether there is sufficient basis and at-risk to take any losses (if applicable) and also whether there is any gain due to distributions that exceed basis.