Jeff owns a 30% interest in a partnership that earned $100,000 in the current year.He also owns 30% of the stock in a C corporation that earned $100,000 during the year.The corporation did not make any distributions,and the partnership distributed $20,000 to him.Jeff must report $30,000 of income on his individual tax return.

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Jeff must report his $30,000 (30% F1F1F1S1F1F1F10 $100,000)share of the partnership's income on his individual tax return.The C corporation's income is not taxed to Jeff until it is distributed to him.The $20,000 partnership distribution does not affect his income.

Jeff Owns a 30% Interest in a Partnership That Earned