K-1

Forum|Forum|6 years ago
April 10, 2020
1 reply
23 views

My K-1, Part 111, line 6a shows $488 as Ordinary Dividends. This same amount also shows up on line 16, first as Code B "Gross Income from all sources", then as Code F "Foreign Gross Income - Passive category." I never received any funds. So, my question = Is that never-received $488, taxable?

Best answer by KarenM90

Yes, Income reported on 6a is taxable dividend income. If you believe this was a mistake, you should contact the partnership/company to get more information.

If your K-1 is from an MLP please note the description of how MLP Income works from the article link below: "MLPs and other partnerships, however, work differently from most stocks. Tax law allows MLPs to avoid having to pay tax at the business-entity level, which gives them an advantage over regular corporations that have to pay corporate tax. The trade-off, though, is that MLPs have to pass through any income they earn to their owners. Even if a partnership doesn't end up paying out income, those requirements force MLP investors to include portions of income on their tax returns."

The Motley Fool Regarding MLP's

KarenM90Answer

Level 11

Yes, Income reported on 6a is taxable dividend income. If you believe this was a mistake, you should contact the partnership/company to get more information.

The Motley Fool Regarding MLP's

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