v54
New Member

Business & farm

Thanks for responding!

 

Thanks for the correction. Distribution is listed under letter A in Box 19 (not 20 as in the title).

 

What you wrote below is my understanding - "distributions reduce your tax basis or another way to look at them is return of your capital contributions and income earned"

 

However, if the distribution is accounted for as a return of my capital contribution, then why do I have a long term capital gain in Box 9a? 

 

I thought I don't start paying taxes on gains until 100% of my initial contribution is returned?

 

It is not a publicly traded company. It's a venture capital fund. Thanks.