What if my Schedule K1 (for partnerships) Box 19 (A) distributions are not from the original investment - it's not returning the capitol invested, but are profit made from the investment? Is this considered taxable income?
In my case I invested in a real estate partnership, and all of the partners receive a portion of the profits each month. If this is considered income, I cannot figure out where to declare it. Everything just says, "declare it on your personal income tax return." But where?
It's not a lot of money, but if I end up having to pay taxes on it later, plus interest fees for being late, it starts to add up. 😛
Thanks in advance.
