Do I need to report K-1 Partnership as income if I got out of partnership in 2017? I put in $3160 and got out $5358? Is difference income?

[griffluc]

I got out of my partnership in 2017 just want to know if that is considered income.  I entered all information from boxes 1-20 put could not enter anything into Part II

[ToddL]

If you entered all the information from Boxes 1 - 20 of the 2017 K-1, you have reported your 2017 Partnership Income.

You still have to report any gain (or loss) on the disposition (sale?) of your partnership interest. The K-1 interview asks if this is a final K-1 and for details on your disposition, most importantly how much you sold it for and what was your basis in the partnership. "What you sold it for" may not be the same as how much cash you received as a final distribution.

The "Basis of Partnership Interest" is what you paid for the investment, less any cash distributions you received plus your share of any income reported on the Schedule K-1s you received while a partner. Depending on your basis, you may have a taxable gain or a deductible loss on the sale.