Can someone explain exactly how I report a cash distribution to partners from a Sub-S partnership? It seems this is done on Line 19a of Form 1065 but I am not sure.

cdj1941 · ‎June 6, 2019

Rick19744 · ‎June 6, 2019

Well we need to get the facts straight first. You are asking about a Sub S but then refer to a form 1065 which is filed for a partnership.
Or are you saying that your partnership owns an interest in an S corporation and received distributions from the S corp?

*A reminder that posts in a forum such as this do not constitute tax advice.
Also keep in mind the date of replies, as tax law changes.

cdj1941 · ‎June 6, 2019

It is a family limited partnership which reports on Schedule K-1

Rick19744 · ‎June 6, 2019

You didn't answer my question. Don't understand "Sub S partnership"

*A reminder that posts in a forum such as this do not constitute tax advice.
Also keep in mind the date of replies, as tax law changes.

cdj1941 · ‎June 6, 2019

Because tax is not paid by the partnership but by each partner on their individual tax returns.

Rick19744 · ‎June 6, 2019

I understand how partnerships operate. I want to understand why you are using the phrase "Sub-S partnership". Please read my original response.
A Sub-S and a partnership are two different entities.

*A reminder that posts in a forum such as this do not constitute tax advice.
Also keep in mind the date of replies, as tax law changes.

cdj1941 · ‎June 6, 2019

It is a partnership as I stated. I am simply asking where and how how I enter distributions to partners in TurboTax form 1065. Forget the mention of Sub-S if you wish.

Rick19744 · ‎June 6, 2019

Cash distributions are reported on the 1065 Sch K line 19(a) and on each partner's K-1 box 19 Code A in proportion to the ownership.

They will also be reported in two other places depending on how you respond to form 1065 Sch B question. If the answer to this question is "No", then they will also be reflected on Sch M-2 line 6(a) and also on the respective partner K-1 Section L.

If you respond "Yes" to the above question, then the distributions will not be reflected on the M-2 or K-1 Section L. Those areas will be blank in accordance with the instructions.

*A reminder that posts in a forum such as this do not constitute tax advice.
Also keep in mind the date of replies, as tax law changes.

View solution in original post

JohnGH · ‎February 7, 2020

Rick, I'm assuming that the schedule B question is #12. I don't understand the question, what determines when one answers it Yes or No?

Can someone explain exactly how I report a cash distribution to partners from a Sub-S partnership? It seems this is done on Line 19a of Form 1065 but I am not sure.

Business & farm

Business & farm

Business & farm

Business & farm

Business & farm

Business & farm

Business & farm

Business & farm