What are property distributions

[Phil577]

Property distributions on a K-1

[Ashby · Accepted solution]

Property distributions are just that, distributions of property from the partnership. Most often, this is cash distributions to partners. But, it can be physical property as well.

A  distribution  is a transfer of cash or  property  by a  partnership  to a  partner  with respect to the  partner's  interest in  partnership  capital or income.  Distributions  do not include loans to  partners  or amounts paid to  partners  for services or the use of  property , such as rent, or guaranteed payments