Okay - hopefully my last post on Pengrowth!   If you haven't
noticed, there are Pengrowth posts on this discussion board
going back to 3/3/05.

Our investment club finally received a K1 Short Form from
Pengrowth in Canada.  It clearly indicates that our
investment club is a limited partner in the Pengrowth
partnership.  It also lists our distribution from them in
item 19A as "Cash and marketable securities."

My question continues to be - where do I enter that in our
club Form 1065?

It is not classified as a dividend or a royalty.  That does
not leave many other income options.  Why can't I enter it
as Other Income and attach a statement identifying the
source?

Because the distribution in box 19a is NOT what you need to report on your tax return. You need to report all of the other items. Box 19a is just the amount of cash you received, and it has no bearing on taxable income or loss. It only adjusts your ongoing basis in Pengrowth.

 

Ira Smilovitz