I didn't receive any distributions on my unit/shares. However, Schedule K-1 (Form 1065), filed and submitted to IRS by the Partnership, shows that my 'Other Income' (Contracts and Straddles) is $10.2K. I was hoping you can let me know: 1) I didn't receive

[TomYoung · Accepted solution]

You can complete your thought and actually ask a question by clicking that "Edit" in the upper right hand corner of your "headline" and then typing into the "Add more details" box as much as you want.

You invested in an entity that's organized as a partnership and you are now a partner in that entity.  Partnerships are "pass through" entities.  That means that partnerships do not pay taxes.  Instead they "pass through" to their partners each partner's share of the partnership's activities on Schedule K-1 so that the partners can report that activity on their own Form 1040 income tax returns. 

The partners report this passed through activity independent of receiving any cash distributions from the partnership itself.  Generally cash distributions to partners decrease each partner's basis in the partnership.  In the same vein income passed through to the partners increases each partners basis and losses passed through to the partners decreases their basis.  These changes in basis need to be taken into account when you sell your partnership units.

Tom Young