sjrcpa
Level 15
02-02-2022
02:54 PM
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There is nowhere on a 1065 or the K-1s to report distributions in excess of basis.
The partners report on their tax returns as a capital gain.
Since I'm also nice, I will put a note on the K-1 saying you appear to have distributions in excess of basis. Consult your tax advisor.
The more I know the more I don’t know.