PTP K1 Interst and Dividend

Forum|Forum|5 years ago
April 9, 2021
2 replies
19 views

Do i have to pay taxes on the interest and dividend amount that is listed under line item 5 and 6 on a K1 for PTP? When I enter the info in the K1 schedule in Turbotax, the amounts flows to dividend and interest section of the 1040 which is taxable. I thought any interest and dividend distributions are not taxed but is used to decrease the tax basis.

Thanks.

Mike9241

Level 15

you have it backwards. first, you are taxed on the dividends and interest reported. second, being income items they increase your basis. basis is reduced for losses, expenses and distributions.

you may be confusing "distributable share" with "distributions". distributable share is just your allocations of the total amounts reported by the partnership. distributions (line 19) are the cash or property you received from the partnership.

Mike9241

Asia527Author

Level 2

@Mike9241 ,so the interest and dividend listed on the line 5 and 6 are not the same thing as the cash distribution I received from the PTP throughout the year? The cash distribution I received is report under line 19A which I'm not taxed on but is used to reduce my tax basis?

Thank you. This PTP stuff is confusing.