Hi! My client received a K-1 from a fund that they had invested in. The K-1 had a 19C Distribution noted. This was a K-1 received in 2020. Please note, this distribution was never made in 2020, and only occurred in 2021; as a non cash distribution of shares. The amount noted on the K-1 was for the original cost of the shares. I need some help better understanding 2 questions:
1. Should we have gotten a K-1 with this distribution noted even though it was not actually transacted until 2021? Should we be requested a revised K-1?
2. If in fact we should have received this K-1, would I put this as a cash receivable? Or, just a current asset?
I am taking over a clients account and the CPA that had been working on it did some things I have never seen before, so I just want to be sure before I fire off any e-mails that I fully understand, and have clear and concise resources.
