Where to Enter Partner Distributions in Drake Tax
Partner distributions are entered only on the K screen, under the AMT and Other Information tab. Line 19a takes distributions of cash and marketable securities directly, and links on the same screen open the property distribution screens for lines 19b and 19c. Amounts flow to each partner on their ownership percentage, and the SA link handles special allocations.
- Data entry
- Screen K
- AMT and Other Information tab
- Line 19a
| Trial balance account | Drake Tax screen and field | Lands on |
|---|---|---|
| Cash distributions | Screen K, AMT and Other Information tab, line 19a | Schedule K line 19a and K-1 item L |
| Property distributions | Links on the K screen for lines 19b and 19c | Schedule K lines 19b and 19c |
| Non pro rata allocation | The SA link beside the line | Each K-1 |
| Partner draws on the trial balance | Same place. Draws are distributions | K-1 item L withdrawals and distributions |
| Guaranteed payments | Screen DED line 10. Not distributions | Page 1 line 10 and K-1 line 4 |
| Capital account effect | Section L of each partner K1 screen | Schedule M-2 and K-1 item L |
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Try it freeWhere to Enter Partner Distributions in Drake Tax on a trial balance
| Acct # | Account | Debit | Credit |
|---|---|---|---|
| 1000 | Cash | 42,800.00 | |
| 1200 | Accounts receivable | 68,500.00 | |
| 1300 | Inventory | 55,000.00 | |
| 1500 | Equipment | 145,000.00 | |
| 1510 | Accumulated depreciation | 47,500.00 | |
| 2000 | Accounts payable | 28,400.00 | |
| 2100 | Accrued expenses | 9,200.00 | |
| 2400 | Notes payable | 92,000.00 | |
| 2450 | Due to shareholder | 15,000.00 | |
| 3000 | Common stock | 10,000.00 | |
| 3900 | Retained earnings | 86,300.00 | |
| 3950 | Shareholder distributions (the account this page is about) | 52,000.00 | |
| 4000 | Gross receipts | 612,000.00 | |
| 5000 | Cost of goods sold | 318,000.00 | |
| 6000 | Salaries and wages | 88,000.00 | |
| 6050 | Officer compensation | 72,000.00 | |
| 6300 | Depreciation expense | 21,500.00 | |
| 6900 | Other operating expenses | 37,600.00 | |
| Total | 900,400.00 | 900,400.00 |
Example journal entries
| Account | Debit | Credit |
|---|---|---|
| Partner A draws | 32,000.00 | |
| Cash | 32,000.00 |
| Account | Debit | Credit |
|---|---|---|
| Partner A capital | 32,000.00 | |
| Partner A draws | 32,000.00 |
Only one place
Drake's documentation is unusually blunt about this: distributions to partners are entered only on the K screen, under the AMT and Other Information tab. Line 19a is a direct entry for cash and marketable securities, and the screens for property distributions on lines 19b and 19c are reached by links from the same screen.
Amounts entered flow to each partner based on their ownership percentage. If the distribution was not in proportion to ownership, the SA link beside the line makes the special allocation.
Draws are distributions
Client books call them draws, and the return calls them distributions. They are the same thing: a withdrawal of the partner's capital, not deductible, and reported in item L of the K-1 as withdrawals and distributions.
What they are not is a guaranteed payment. A guaranteed payment compensates a partner for services or capital, is deductible by the partnership, and goes on the DED screen line 10 and line 4 of the K-1. Treating a draw as a guaranteed payment overstates deductions and the partner's self employment income; treating a guaranteed payment as a draw does the reverse.
The split has to come from what the money was for, which is a client conversation rather than a software question.
The capital account connection
A distribution has to end up in two places that agree: Schedule K line 19a, and item L of each partner's K-1 as part of the capital roll forward.
The capital side is entered separately, in section L of each partner's K1 screen. When the two disagree, the capital accounts do not foot to Schedule L, and on a 1065 that usually surfaces as Return Note 044 or as a balance sheet that will not tie.
Distributions can exceed basis
A partner's distribution is generally tax free to the extent of their outside basis, which includes their share of partnership liabilities. Beyond that it produces gain.
A partnership that distributed more than it earned, funded by borrowing, is the normal case where this bites, and the liability allocation reported in item K is what supports the basis that made the distribution tax free.
Tax return treatment
| Form | Line |
|---|---|
| Form 1065 | Schedule K line 19a, with item L of each K-1 and Schedule M-2 |
Common questions
Where do I enter distributions to partners in Drake Tax?
Only on the K screen, under the AMT and Other Information tab. Line 19a takes cash and marketable securities directly, and links on the same screen open the property distribution screens for lines 19b and 19c.
Are partner draws the same as distributions?
Yes. The books usually call them draws and the return calls them distributions. They reduce the capital account, are not deductible, and appear in item L of the K-1 as withdrawals and distributions.
How do I allocate a distribution to one partner only?
Through the SA link beside the line. Without a special allocation, Drake splits the amount between partners on their ownership percentages, which misstates every K-1 when the money actually went to one partner.
Is a partner distribution taxable?
Generally not to the extent of the partner outside basis, which includes their share of partnership liabilities. Beyond basis it produces gain, which is why the liability allocation in item K matters as much as the distribution itself.
Related answers
Go deeper
This page is the short answer. These articles work through the same ground in detail.
Last reviewed October 18, 2026.