K-1 Return of Capital, Line 19

[rodriguerex]

The K-1 form in line 19 shows, say $100. The supplemental information says that $60 of the $100 is a return of capital. Do I report $100 in line 19 and use the $60 to reduce my basis in the partnership or do I show the $60 or net $40 on the return? If I show the $60 or $40, where are they to be entered?

[Anonymous]

partnership distributions shown on line 19 are generally 100% non-taxable return of capital.  the only time there is a tax implication is when distributions reduce your tax basis below $0  TT doesn't use box 19 (so if you leave it blank nothing will happen).    the question is did the $40 reduce your basis below $0.  if yes, you have a capital gain that you must enter on the form 8949 worksheet.  it would be short term or long term depending on how long you held the investment. 

[rodriguerex]

The return of capital does not bring my cost/basis to zero - it is still a positive number.  Since the note has the return of capital amount, which is less than the amount in the box, do I enter only the return of capital amount on the return as the line 19 amount?

[Anonymous]

I don't understand the k-1 referring to part of the distribution as a return of capital.   It makes no sense.  but then again I can't see the K-1.  you can leave box 19 blank.  as I have said TT doesn't use it for anything (TT does not compute basis) and the box 19 info is not transmitted to the IRS when you submit your return.   

as a matter of fact, a lot of the K-1 input is not used for anything by TT and is not transmitted to the IRS.  this includes address, part I item c; part II items, I1, J, K, L; part III, 18C, 19, and 20 (for box 20 some items may need to be inputted elsewhere.