Have a Tax Question? Ask a Tax Expert
Thank you for contacting me about your Tax issue. I will work hard to help you understand the issue clearly.
The ordinary income from the K-1 is reported on Page 2 of the Schedule E of your 1040.
If you were active in the business, you may have a box on the K-1 Box 14A indicates self-employment earnings and flows to Schedule SE to compute the SE (medicare and Social Security tax).
Distributions that are NOT in excess of basis are not taxable or reported on your 1040.
Remember that any amount in Box 1, ordinary income, INCREASES your basis. Any money paid out (distributed) DECREASES your basis.
Based on the numbers in your question, your basis INCREASED by $283 during the year.
no no box 14. I'm really confused with this because I have received 0 dollars for anything other than my w-2 wages.
To the contrary, says the K-1.
The K-1 says you earned $110K, and almost all of it was paid to you.
But I received NO cash
Distributions do not have to be cash.
But the K-1 says you received either cash or something equivalent.
If you did not receive such, then you should contact the company or its accountant.
What other distribution is there, I received NOTHING Tangible
I don't know. Maybe you received $110K worth of concert tickets. Again, if you don't know what was distributed, you need to contact the person that created the K-1.
I can only interpret what the document SAYS; I have no knowledge of what actually transpired.
I certinaly will, all of this is new to me. Thanks for your help
OK have a good weekend!