Form 1065 Schedule K Line 22 (Distributions)

state: ohio

3 questions pertaining to line 22 of the form 1065 schedule K:

1. Is this required for professional service llc's or is this for companies that invest in securities and therefore report information related to capital gains?

2. where does this information go beyond line 22 on schedules K and K-1?

3. does distribution refer to cash/marketable securities released to partners/members from current tax year income, or does it include distribution of cash/marketable securities from prior tax year income? for instance, some partner profits from a prior year could have been left in a savings account at the end of 1999 and distributed 2000 along with cash/marketable securities from 2000 income.

1. Is this required for professional service llc's or is this for companies that invest in securities and therefore report information related to capital gains?
This is required for all entities that are taxed as partnerships, including professional service llc’s.

2. where does this information go beyond line 22 on schedules K and K-1?

It gets a little complex if there were distributions of marketable securities, but since your organization is a professional service llc, I assume the distributions would all be in cash. If that is the case, you must reduce your basis in the llc by the amount shown on line 22. If the amount on line 22 is greater than your basis in the llc, then the excess is treated as the sale of a capital asset.

3. does distribution refer to cash/marketable securities released to partners/members from current tax year income, or does it include distribution of cash/marketable securities from prior tax year income? for instance, some partner profits from a prior year could have been left in a savings account at the end of 1999 and distributed 2000 along with cash/marketable securities from 2000 income.
The amount represents all distributions made in the year 2000, regardless of source.