K1 questions ordinary business income vs distribution
I have a K1 that I received a distribution of 10,671 dollars for - but under box 1 Ordinary business income it states 25,494 - so my amount after taxes is literally 271 dollars of profit? Is turbotax calculating this incorrectly?
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1 Replies
RichardK
New Member
Jun 7, 2019 4:09:53 PM
The ordinary business income is taxable to you and increases
your basis in the entity, the distribution decreases your basis, but generally does
not affect you taxable income.