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How/Where to report K-1 line 19A as income when basis has been used up? LLC Partnership

Forum|Forum|5 years ago
July 6, 2020
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I have a distribution on line 19A and since I have written off my basis years ago, where/how do I report this income? Is it treated as a dividend, and if so is it qualified? It is a US based Partnership LLC that I've owned for 12 years and all income is from US clients.

LLC

Best answer by DawnC

If there has been a distribution in excess of basis, then gain has to be recognized on the distribution. This gain is not reported on Schedule K-1. The partner/shareholder reports the gain on their tax return.

This type of transaction will be reported as a capital gain (Long-Term) on Schedule D. The sale prices is the proceeds and there is no basis as it as already been used. To report it in TurboTax, type in schedule d in the search bar and use the Jump to schedule d link to be taken to the Investment Sales entry screen. Choose Everything Else and enter the date and proceeds - no basis.

DawnCAnswer

Employee

If there has been a distribution in excess of basis, then gain has to be recognized on the distribution. This gain is not reported on Schedule K-1. The partner/shareholder reports the gain on their tax return.

This type of transaction will be reported as a capital gain (Long-Term) on Schedule D. The sale prices is the proceeds and there is no basis as it as already been used. To report it in TurboTax, type in schedule d in the search bar and use the Jump to schedule d link to be taken to the Investment Sales entry screen. Choose Everything Else and enter the date and proceeds - no basis.

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