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patbusche
New Member

My K-1 shows a distribution but the Parntership did not distribute any money this past year. Why do i have to pay taxes on it?

I am a small minority owner and have no say in whether to distribute or not.  Seems unfair to have to pay on money I have not recvd.
1 Reply
TaxGuyBill
Level 9

My K-1 shows a distribution but the Parntership did not distribute any money this past year. Why do i have to pay taxes on it?

Sorry, that is the way the law is written.  You pay taxes on the profit of the business, regardless of what you actually receive.

However, whenever you do receive a distribution, you will not pay taxes on it because you have already paid taxes on it.(assuming the distribution isn't more than your share of the profit).

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