KarenCPA-CFE
Level 1
 
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dascpa
Level 12

You don't.  Partnership distributions are a return of equity, not income.  There should also be a K-1 received from the partnership.  Be careful on this that you are not duplicating the income.  Many investment houses don't know what to do with this.  The K-1 is the "gospel", not the brokerage house info.

KarenCPA-CFE
Level 1

Thank you! I will have several K-1s for this client for her W-2 job but evidently one of the K-1's is for an investment in oil and gas.

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qbteachmt
Level 15

"several K-1s for this client for her W-2 job"

Sorry, just to clarify: A partnership is paying this person via Payroll, and she is one of the partners also getting K-1?

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