Most items on the K-1 (boxes 5 and 6, but also 1-3, 10, 13, 16, etc) do not reflect cash you receive. They are items that you report on your tax return, and either pay taxes (e.g., 5 and 6) or get tax reductions (e.g., the loss in box 1).
Because these things are changing your taxes, and you didn't actually receive the money, your basis changes. That ensures, when you finally sell, that the gain/loss you report nets out all these other items. So items of income (like 5&6) increase your basis. Items that you can deduct reduce your basis.
The partnership also gave you cash distributions (19A). If those were taxed immediately they wouldn't affect your basis (because you got real cash, and paid tax). But if they're not taxed, then they impact your basis just like everything else. So in the case of ROC, which isn't taxed, you're basis would be lowered by the amount received. ROC isn't taxed today, but you'll still pay Cap Gains on the amount when you eventually sell.
**Say "Thanks" by clicking the thumb icon in a post
**Note also, I'm not a Tax Preparer/CPA. Just a volunteer, seasoned, TurboTax user.
Use any advice accordingly!
