How is my basis affected by cash distributions and Partnership net income (loss)?
• The cash distributions you receive are a return of capital and decrease your basis in the Partnership. At year end your basis is increased or decreased by your share of the Partnership’s taxable income or loss allocated to you on your Schedule K-1. • Do I report any cash distributions I received from the Partnership as my taxable income? • No. You should report the income and other items shown on your Schedule K-1 provided to you by the Partnership. • Why is the amount of cash distributions I received from the Partnership different than the amount I have to report on my individual income tax return? • The cash you received is a return of capital and represents your share of the Partnership’s available distributable cash. The amount you are required to include in your individual income tax return is your share of the Partnership’s income and related items, allocated based on the number of units you owned during the year and reported on your Schedule K-1. These amounts differ due to ch
