@Phin Fan
The simple answer is yes, they would be considered distributions. BUT, how do you know that the cash in those accounts has been previously reported on your K-1s? The only way to know that is to make sure you have adequate tax basis to cover the distributions. The equity section of your balance sheet may not reflect your tax basis so look at Schedule M-2 of your most recent tax return to see the balance at year-end. Recently, I made the mistake of assuming that I could take a distribution of cash after the sale of a couple of businesses, only to find out that I had insufficient tax basis to fully liquidate the assets, thereby requiring the businesses to remain active in order to avoid a significant tax liability. I would suggest running this by your CPA/tax accountant depending on the balances in the accounts.
