@lightyeargua Yes -- you have to report the income. By buying into a partnership, you become responsible for paying taxes on any partnership income, even though you didn't get any cash. However, when you sell the partnership, your cost basis will have been increased to account for this issue (e.g., after this K-1, your new cost basis is whatever you paid + $5000+$150+$191).
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**Note also, I'm not a Tax Preparer/CPA. Just a volunteer, seasoned, TurboTax user.
Use any advice accordingly!
