I will provide some guidance here:
- Having the K-1 in your husbands name should not cause an issue. It appears based on your facts that he died in 2017 and you are able to file a joint return in the year of death.
- As a partner in a partnership you need to be maintaining a basis schedule of your investment in the partnership.
- The distribution will be taxable to the extent that the proceeds exceed the basis in the partnership. As such, the key here is to know what your basis is.
- Depending on when the $$ were distributed to you, it could be accurate that nothing is reported in Part III. I assume that the K-1 is marked final.
- The other issue is the K-1 may need to be reported in your husbands estate. You may be below the filing threshold. Without knowing all the facts here, I would recommend you consult with a tax professional for some advice on how to report this for 2017.
*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.
