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PDtax
PDtax, Certified Public Accountant (CPA)
Category: Tax
Satisfied Customers: 4104
Experience:  35 years tax experience, including four years at a Big 4 firm.
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I received a Form 8308 along with a Schedule K1 from my partnership.

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I received a Form 8308 along with a Schedule K1 from my partnership. During the year, I terminated my employment and received a cash distribution equal to final basis in the partnership. Do I need to treat the distribution as income?

PDtax :

Hi from Just Answer. The final distribution was a buyout of your partnership interest, reported on the 8308.

PDtax :

The payout should be reported as a capital transaction, with your sale proceeds compared to your basis, and the difference reported as gain or loss.

PDtax :

Since you were paid the amount of your final basis, it sounds like you report the transaction as a sale with no gain or loss.

PDtax :

If you need additional information, please ask. Thanks from Just Answer.

Customer:

Thanks for the reply. Would the capital transaction go on Schedule D like any other asset sale?

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