Partnership Taxation: Current (Non-liquidating) Distributions

Summary

This practice note discusses the taxation of a partnership's or a limited liability company's (LLC) current, or "non-liquidating" distributions to its partners or members. "Current distributions" are the distributions a partnership or LLC uses to distribute its earnings and other property to its partners or members in the normal course of business, as an ongoing entity. Current distributions to a partner differ from liquidating distributions, which are distributions that terminate a partner's interest in a partnership.