Reporting Partnership Income
Partner Tax Reporting
Partners generally report their share of partnership income, deductions, credits, and other tax items on their own tax returns, even if they did not receive an equivalent cash distribution.
- Report allocated income.
- Report allocated deductions.
- Report allocated tax credits.
- Maintain records supporting basis calculations.
Taxable income and cash received are not always the same.
Summary
Partners are generally taxed on their allocated share of partnership tax items rather than solely on cash received.