2024 K-1

[jameslair4225]

I received a K-1 for farm income. The amount on line 2 (net rental real estate income) is going to my taxable income.  In past years the amount on line 19 (Distributions) has been the taxable amount.  Could someone enlighten me on this and why TurboTax is not using the Distribution as the taxable amount?

[PatriciaV]

Distributions from Schedule K-1 are often nontaxable if they represent the return of your investment (capital). It's possible that in prior years, the income from Box 2 was equal to the Box 19 Distributions amount.

However, the amount from Box 2 is taxable to the recipient.

[jameslair4225]

Great answer.  

Jim