I thought distributions meant the amount that you are paying yourself and not leaving in the business as capital. They are. Distributions, are the amounts that are distributed to the partners whether it be cash or securities or other assets. But, also in your case, because you paid the other partner $7,400, your distributions should be a part of that.
So, if you you and your husband are now 50/50 partners and before were 1/3, 1/3, 1/3, you would split that $7,400 between you and your husband and count that your distributions because you basically used the business account to make a "personal" purchase when you bought more of the business. It would be the same as if you used the business account to go buy stock in Intuit, this would be money you used for your personal benefit, not that of the business so it is money you took out. So, if you actually took $5,710 in cash each, and did not include the buyout, you would increase your distributions by $3,700 for a total of $9,410.
If you need to make changes to your business return, you can amend your 1065 and K-1's by going back into the program and clicking Amend a Tax Return on the home screen right under where you see your tax return.
**Say "Thanks" by clicking the thumb icon in a post
**Mark the post that answers your question by clicking on "Mark as Best Answer"
