Is a K1 distribution the same as a disposal of a portion of my interest in a partnership?

thomasrmendez · ‎June 3, 2019

MinhT · ‎June 3, 2019

No, a K-1 distribution is not a disposal of a portion of your interest in the partnership. Generally, it is distribution of profits already taxed through your Schedule K-1. Your share of ownership should remain the same.

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MinhT · ‎June 3, 2019

No, a K-1 distribution is not a disposal of a portion of your interest in the partnership. Generally, it is distribution of profits already taxed through your Schedule K-1. Your share of ownership should remain the same.

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TomYoung · ‎June 3, 2019

Very commonly, though, it does change your basis in the partnership.

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Is a K1 distribution the same as a disposal of a portion of my interest in a partnership?