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Old 03-20-2011, 09:13 PM
smokey
 
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Schedule K-1

Line 2b on my Schedule K-1 Form 1041 shows 14. but line 2a shows nothing. This is the final K-1. My tax software says that line 2a has to be more than line 2b. Is this correct and what should I do?



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Old 03-21-2011, 07:45 AM
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“ Is this correct and what should I do?”---> I can't tell you which box to use, as it depends on a number of factors, including the nature of the distribution and source of the funds distributed; one possbile scenariois that 2a May be return from an investment that is not considered income. The return of capital is when some or all of the money an investor has in an investment is paid back to him or her, thus decreasing the value of the investment.



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