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thomasrmendez
New Member

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

 
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MinhT
Expert Alumni

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

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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2 Replies
MinhT
Expert Alumni

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

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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**Mark the post that answers your question by clicking on "Mark as Best Answer"
TomYoung
Level 13

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

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