Partner's K-1 Box 19F

[jerry]

Taxpayer works for a large company (Proofpoint) that was taken private and is now organized as a partnership.    He received a K-1 with amounts in Boxes 19A and 19F.  19F is for "distributions to partners for performing services."  Employees were told it was a "dividend."

He has sufficient basis listed to not otherwise need to report the distributions as gains.

How do I enter the 19F amount in Lacerte?  Is the amount subject to SE tax?

Thanks!

[Accountant-Man]

Is 19F like the line for guaranteed payments? Those are for services performed, subject to SE tax, too.

[jerry]

Guaranteed payments for services go in box 4A

This is 19F, under Distributions

[Karl]

I would input it in 19A. The split out for 19F appears to just differentiate distributions between partners that do and don't perform services in the pship. It doesn't (shouldn't) reflect the value paid for services provided. I think the only need you have at the 1040 level for most of the box 19 codes are to make sure basis is calc'd correctly.

[sjrcpa]

It's new reporting this year and could enable IRS, in the future, to make sure partners are paying SE tax.