This is a complicated area and I recommend that you get some professional tax advice so you understand the tax ramifications.
Having said that, a few comments:
- Your facts are extremely limited, but I am guessing that you received a profits interest in the partnership.
- In general, receiving a profits interest is not a taxable event if it falls in line with the safe harbors issued by the IRS.
- Receiving a profits interest that vests over time is not uncommon
- However, if you make a timely Section 83(b) election (as you indicate you did in your facts), you are notifying the IRS that you are immediately treating the receipt of a profits interest as a taxable event. The receipt of this profits interest is taxed as ordinary income. You no longer have a vesting period.
- Any K-1 activity reported to you MUST be included on your form 1040 Schedule E.
*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.
