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Question regarding taxation of partnership distributions and…

Hi, question regarding taxation...

Hi, question regarding taxation of partnership distributions and capital gains

Accountant's Assistant: The Accountant will know how to help. Please tell me more, so we can help you best.

I am in a partnership, with primary business rental housing. We sold a property held >1 year, for a $30k capital gain. Proceeds of the sale was $75k, which I took as a distribution (it was my "deal", so I took all the proceeds). I am being taxed on the distribution and on the capital gain, which doesn't seem right.

Accountant's Assistant: Is there anything else important you think the Accountant should know?

Cant think of anything.

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Answered in 5 minutes by:
10/15/2017
Richard
Richard, Tax Attorney
Category: Tax
Satisfied Customers: 57,015
Experience: 29 years of experience as a tax, real estate, and business attorney.
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Hi! My name is Richard & I will be helping you today! It will take me a few minutes to type a response to your question. Thanks for your patience!

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Good morning. Is this a limited partnership? Did you have a negative capital account prior to the sale due to prior loss allocations?

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Customer reply replied 9 months ago
to a limited partnership. No to a negative capital account

Did the distribution cause your capital account to be negative? And, are you also the general partner?

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Customer reply replied 9 months ago
Hi Richard, the capital account did not go negative. Regarding the general partner, it is a corporation, 1% partner, both limited partners are officers of the Corp.

Can you provide me the K-1 which shows that you are being taxed on the distribution?

Richard
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Category: Tax
Satisfied Customers: 57,015
Experience: 29 years of experience as a tax, real estate, and business attorney.
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