My adjusted basis at the end of 2016 was $979. In 2017, my net decrease (real estate loss) was $2,070. I also received a distribution of $5,000.
It's my understanding that I have to report the excess distribution, since it exceeds my basis. I've entered all the 1065 K-1 information, but I don't see my excess distribution reflected anywhere. How/where do I account for it? And is the entire amount ($5,000) taxable, since my adjusted basis is negative/zero?
Thanks in advance.
