Ok. So let me summarize what I believe to be the facts, and then have two questions:
- You have a client that is a partnership that has invested in another partnership
- Your client received a K-1 with an amount on line 19C
- This was not a liquidating distribution
Assuming I am interpreting your facts and responses correctly:
- You indicate that the investment partnership "distributed shares".
- Are you able to explain what the distributed shares were?
- Shares / units in the same partnership that you are invested in?
- Shares / units of an investment that the partnership was invested in and distributed those out?
- You didn't answer my question as to whether you have a good outside tax basis maintained
Wait........did you use the word simple (simply) in the same sentence as partnership tax question?
*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.
