Returning Member

Schedule K-1 (form 1065) Tax impact

I owned Management Incentive Units (similar to stock) for a company that was sold in 2018.  Shareholders were paid out 2/3 of the monies in 2018 and the remaining 1/3 in 2020.  Not being a tax guy, I had someone do my taxes in 2018 due to the Schedule K-1 (form 1065). 

2018 Taxes:
They listed the monies received as long term capital gains from Schedule K-1 (line 9a) onto schedule D (line 12), although my actual distributions from line 19 were less than the total.   So I was taxed on the larger amount for capital gains than the smaller amount I received.  The schedule K-1 showed an ending capital account (section L) that was the difference between the "current year increase" and the distributions.  Sounds good to me so far.  2018 tax impact: Paid capital gains on the larger amount.

2019 Taxes:

Received a new Schedule K-1 (form 1065) the reflected the beginning capital amount (section L) from the 2018 schedule K-1 and also showed a current year net income.  The ending capital account (section L) is the amount that I should be paid in 2020.  2019 tax impact: None?  I did my taxes online with turbo tax and entered all of the details for schedule K-1.  I guess this is expected since I did not receive cash in 2019.  I looked at TurboTax forms and don't see a mention of this "capital gain" on Schedule D.


2020 Taxes

Received a 2020 Schedule K-1 and a check.  Section L shows a beginning balance that was a carryover from 2019 and an ending balance of 0 due to the distributions.  There were no "increase" in 2020.  The distributions (section 19) reflect my pay out.  Tax impact:  None?!??!?  I entered Schedule K-1 in TurboTax and don't see any impact, no entries in Schedule D?

What am I doing wrong?  I think I need to amend my 2019 return to edit Schedule D and show the capital gains listed on the Schedule K-1 (section L)?  There were no capital gains in 2020 on Schedule K-1