Each member in the LLC taxed as a partnership needs to be tracking their tax basis (also known as outside basis). This begins with the initial capital contribution and is updated each year for the applicable lines on the K-1.
Unless you know your tax basis, you are not able to determine the taxability of any distribution.
You don't indicate when the LLC started.
If the distributions were paid out in 2023, then those amounts will be reported on your respective K-1.
You will need to update your tax basis for the applicable lines on your 2023 K-1.
As long as your tax basis remains positive, you will not have any tax impact as a result of the distributions.
*A reminder that posts in a forum such as this do not constitute tax advice.
Also keep in mind the date of replies, as tax law changes.
