Property distributions are just that, distributions of property from the partnership. Most often, this is cash distributions to partners. But, it can be physical property as well.
A
distribution
is a transfer of cash or
property
by a
partnership
to a
partner
with respect to the
partner's
interest in
partnership
capital or income.
Distributions
do not include loans to
partners
or amounts paid to
partners
for services or the use of
property
, such as rent, or guaranteed payments
