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Returning Member
posted Mar 12, 2021 8:03:28 AM

K1 Distributions

 I have over $30K of Distributions (Box 19) on my K1 yet line 5 on Schedule 1 (Additional Income) shows -32 dollars. Is this because there is a loss of $35K in Part III, Box 1 (Ordinary Business Income) on the K1?

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1 Replies
Level 15
Mar 12, 2021 8:26:41 AM

Distributions are essentially comprised of previously taxed business income (or return of capital) and do not enter the taxable income matrix unless the distributions are in excess of your basis (although they do reduce your basis).

 

Regardless, net business losses would appear on Schedule 1.