AliciaP1
Expert Alumni

Get your taxes done using TurboTax

As @Mike9241 stated, the distribution is not income to you unless it exceeds your basis in the LLC and then, only the excess distribution is income.  If this was the case, your K-1 would reflect the distribution and the excess as a taxable 

 

The distribution paid in January of 2022 is properly reported on your 2021 Schedule K-1 if the LLC calculated and accrued distributions in 2021, even if it was on 12/31/21.

 

You are not falsely reporting the distribution as it is reported on your 2021 K-1.

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