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Level 2
posted Jun 6, 2019 2:23:04 AM

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

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?

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1 Best answer
Level 13
Jun 6, 2019 2:23:06 AM

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.

1 Replies
Level 13
Jun 6, 2019 2:23:06 AM

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.