Reporting Distributions Hello Everyone,
First of all, thank you for taking the time to read my question.
I find myself a bit frustrated and overwhelmed. I have done my own taxes for many years now, using tax software. However, recently (in 2013) I started doing a few stock trades (involving partnerships) that gave me distributions (instead of the normal dividends), which then caused some Schedule K-1s (about 10 in all) to be generated. I tried to cover these in my tax program but it has turned out to be messy and convoluted.
From what I have read, if I have received distributions but the amount of those distributions is far less than what I paid to purchase the stock shares (the cost basis?), then I am not liable for any taxes on the distributions. Am I correct or am I wrong? Of course I am sure that I am still liable for any gains in the stock value itself when I sell the stock.
Can someone please clarify?
Thank you in advance for your help.
Josef |