Get your taxes done using TurboTax

you have it backwards. first, you are taxed on the dividends and interest reported. second, being income items they increase your basis. basis is reduced for losses, expenses and distributions. 

 

 

you may be confusing "distributable share" with "distributions". distributable share is just your allocations of the total amounts reported by the partnership. distributions (line 19)  are the cash or property you received from the partnership.