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Level 1
March 27, 2021
Question

Schedule M-1 form 1065

  • March 27, 2021
  • 1 reply
  • 3 views

I have a non dividend distribution for a partnership tax return am showing on Schedule M-1 form 1065, line 6a.  This amount is not being shown on Schedule K and not distributed to any Schedule K-1.  In addtion the amount does not show on the DNI worksheet.  All other amounts reported on the income tax return are being distributed correctly to the schedule K-1's.  Has anyone had this happen and what is the workaround.

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1 reply

sjrcpa
Level 15
March 27, 2021

A nondividend distribution is a return of capital. It should reduce the investment on the balance sheet.

The more I know the more I don’t know.