Returns on the partnerships investments (interest in box 5, cap gains in box 8 or 9) aren't passive. As a partner, you report them on your return and pay tax on them this year. Because you didn't actually receive any cash, those items increase your basis so that your future tax bill -- when you sell -- will be smaller.
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**Note also, I'm not a Tax Preparer/CPA. Just a volunteer, seasoned, TurboTax user.
Use any advice accordingly!
