The previous answer explains the K-1, but as far as getting money, think of the K-1 as nothing more than a means to change your purchase cost for eventual 1099-B reporting:
- When you sell, you report a capital gain / loss for tax purposes.
- The cost you use to calculate the capital gain changes with K-1's -- virtually every number on the K-1 eventually gets added or subtracted from your original purchase cost, changing your net profit/loss. That's how you finally turn all those allocated entries into actual cash in your pocket.
Reporting taxes on the sale of a partnership is complicated too, but at least you only have to do it once.
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**Note also, I'm not a Tax Preparer/CPA. Just a volunteer, seasoned, TurboTax user.
Use any advice accordingly!
