Will distribution of LP be on 2018 or 2019 K1?

[Treasur2]

I was a unitholder in a LP. LP is my employer. Employer sent out a letter saying that LP was ending and going to become c corporation. I was given choice to liquidate some of my units. I did so.  The letter stated must be signed by 12/22/18. I did so. Then the employer announced that "distribution" would not take place until mid to late January 2019. It arrived on 1/24/2019. Will this amount be on my 2018 K1? Or will I get another K1 for 2019?

I am asking because I don't know if I need to make tax payment.

[Rick19744 · Accepted solution]

So a few comments on your question:

1. No one can say for sure as we don't know how your 2018 K-1 fill be handled.  
2. Technically, since you are a cash basis taxpayer, and receiving a distribution in 2019, the tax impact should technically be a 2019 transaction.
3. Having said that, we don't know if the preparer of the return will handle it this way.
4. I also don't know how they will be handling the purchase of your units as noted in 1 above.
5. We also need to wait to see if your 2018 K-1 will be marked final.  I imagine it would be.
6. You may want to call them and ask a few questions so that you can get some clarity.
7. Hopefully you have maintained a basis schedule of your investment in the partnership

[Treasur2]

Would it be possible to get a "final" k-1 in 2018, then a 2019 K-1 showing the distribution?

[Rick19744]

No.
Your redemption of your units should not be reflected on your K-1.

[Treasur2]

You mean 2018 right?

[Rick19744]

Correct.  A redemption will not be reported on a K-1 period.

[Treasur2]

My redemption is at a profit. I would not be redeeming it if it wasn't.