Partnership Distributions
Receiving Money or Property
Partners may receive cash or property distributions from the partnership. The tax consequences depend on the type of distribution, the partner's basis, and applicable tax rules.
- Cash distributions
- Property distributions
- Liquidating distributions
- Non-liquidating distributions
Note
A cash distribution does not always create taxable income because taxation depends on applicable partnership tax rules.
Summary
Distributions require careful tax analysis because they do not always match taxable income.