You need to report the cash distributions to the member's on the Schedule K and Schedule K-1 box 19 code A.
Each member will need to understand how to maintain their tax basis in the investment.
This worksheet needs to be updated every year for the applicable items on the K-1.
Partnership tax gets complicated very quickly, so it may be in your best interest to get some professional advice / input.
*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.
