Energy transfer partners k1

[Gilgamesch]

I have a couple of questions about the Energy Transfer Partners K-1. I notice they list 3 companies in the supplemental material and was wondering if you have to enter 3 K-1's into TurboTax or if you can consolidate the data in one K-1. Also if you have to use 3 K-1's can you use the ETP address for all 3. Also line 20 on the K-1 there is a code "Z" and when I enter this TurboTax asks for additional information none of which seems to match what is on the ETP supplemental form. Any help would be appreciated.

[nexchap]

Although its a pain, you should really enter each of the ETP companies separately.  This will make life much easier down the road if one of them is spun off, or if you buy shares in one of them directly (in which case you'd consolidate the K-1 from the company you hold with the values ETP provides).  It's fine to use the ETP address for all 3; but use the different partnership identifiers (they give the unique codes for each).

As for the line 20Z entries, those are informational.  Depending on your tax situation, some or all or none may be relevant to you.  For example, I live in a non-conforming state and so use the Bonus Depreciation values to make corrections to my state return.  So you don't need to enter them into TT, but you do have to take note of each and see if it impacts the way you fill out your return.

[Gilgamesch]

Thanks for the advice. I will go ahead and enter the 3 separate K-1's. None of the line 20 Z entries match up with the information I got on ETP so I should be okay in that area.

[renos]

How then do you deal with a complete sale of a tiered MLP like ETP, with several sub K-1s? Do you simply enter the sale information and do the cost basis adjustment for the "parent" MLP (in this case ETP), and just delete the sub K-1s (in this case SXL and PXTP)? Or some other method?
Thanks!

[gbern]

I have similar question:
I am equally confused on the additional page Energy Transfer (ET) included in the Tax Package for the ETP to ET transfer.  It is titled "Built In Gain/Built In (Loss) Statement."  It states "On October 19th, 2018 you contributed your ETP units to Energy Transfer LP ("ET") in exchange for ET common units.  An asset contribution to a partnership would result in a built in gain or (loss) to be recognized by the partner as the units are disposed.  The tax basis reported below is based on information provided to the Partnership by you or your broker, or the amount used to determine your share of allocable gain or loss."..."This statement is provided by the Partnership to report the built in gain or built in (loss) generated by an investor's exchange of property for ET units."
Gives 3 entries: "Fair value of contributed ETP Units" and "Tax Basis of Contributed ETP Units" and "Built in Gain/Loss".
My question:  Is this reportable on 2018 taxes or is this to be used when sold in future?

[AnnMarie]

I have the same question and am anxiously awaiting the answer.  We are running out of time...

[gbern]

Got the answer from Energy Transfer in written form and on the telephone):
"The built in gain schedule in the ET tax package is informational only.  If you look on the K-1 itself, you'll see a Box "M" that asks whether or not property with a built in gain or loss was contributed to the partnership during the year.  For all of the legacy ETP partners that held through the ETE/ETP transaction, the form of the transaction was a contribution into ETE by all of the public ETP partners of their ETP units (i.e. property and not cash) in exchange for ETE/ET units.  Since virtually every ETP partner would have had a difference in the value of their respective ETP units versus their adjusted tax basis, virtually every partner is deemed to have contributed property (i.e. ETP units) with a build in gain or loss (i.e. the difference in the FV of the ETP units immediately before the transaction and the adjusted tax basis of the units).  If Box "M" on the K-1 is checked "Yes" (which it should be for virtually every former ETP partner that participated in the ETE/ETP tranasaction), we are required to attach an informational statement to the K-1."

[AnnMarie]

I continue to write and TT continues to log me out and my comment is no longer visible - probably taking too much time.  However, they possibly will post a comment from me three times.  If that is the case, I apologize.  I copied and posted my message after losing the first one I wrote.  Please see the following:  

Thank you so much for this information. The ET K1 does have Box "M" checked "Yes." Did they explain what the informational statement is to include?  Wondering if you know if it is reasonable to assume that the FMV reported is the beginning basis for the ET units?  Also wondering if you entered in TT  the supplemental K-1 info for USAC and SUN, under their respective FID numbers?  Someone in the Community said to combine the USAC figures on each K1, as well as the ETP figures and then report USAC and SUN separately.  I disagree with the combination of the ETP figures as I believe that will overstate the ETP loss.  In addition, I had previously called ET tax support inquiring about the "other columns" and was advised only to report the ETP column on the ETP K1 and the ET column on the ET K1.  So, I am perplexed about this issue.  Again, thank you for the information and thank you for your time.

[AnnMarie]

Hello - had to get back to you to let you know I read your post incorrectly regarding the "informational statement."  I thought "they" were advising you to include an informational statement with your tax return - "we are required to attach an information statement to the K-1.   I realize now that they were providing you with what they had to do, not what we had to do.  Hope that makes sense.  I am still perplexed, however, about how to record the Built-in Gain/Loss in the spreadsheet I keep to track basis adjustments.

[gbern]

Ann Marie, I'm as lost as you are about how to enter in a Gain/Loss spreadsheet.  At this point all I know is the total "Gain/Loss"  of my ETP now ET units that were given on the ET additional statement.  If you figure it out, please share.  At least I got my taxes done!

[sgiitb85]

And what do you for the numbers shown against state? Do we have to file that many state income tax forms? Looks like this investment is a headache if it generate so much paperwork.

[AnnMarie]

I no longer own the shares.  Sold them in 2019.  But I just looked at my Sales Worksheet and the way I read this: "Some states require that 'certain nonresidents apportion...," I felt they were not talking about me since my investment was very small.  Regardless, my gain was so small and the percentages charged by the states mentioned were so small that I concluded I would not meet the states' minimum taxable income.  I would call ETP Tax Package Support. (I typed in their telephone number for you, but TT removed it from my message).  I had called them - at two difference times - about this and they said:  "You have to contact your tax advisor."  I called again with another question and again was unsuccessful.  So, I would put some pressure on. You need to find out if you are a "certain nonresident." (Just spent one hour researching. Cannot find an answer.) Good Luck!

[sgiitb85]

Thankyou.

I believe the numbers are small and can be ignored for tax filing purposes. Although I do see somewhere mentioned that if you a re a non resident you still have to file. Wow! what a headache. I am getting out of this stock in 2021 so that I dont continue this headache in future years and then have the responsibility to also maintain the basis.

[DaveF1006]

It depends. Normally I wouldn't suggest this but I would ignore this completely since it is small. 

[sgiitb85]

Got one more question related to K- from Energy Transfer. This K-1 has three companies - ET, USAC, and SUN. Previously someone  on this forum suggested entering the data has three K-1s - individually for each company. I understand that, But how do I enter Part II, J and K, and L data - partner's share of profit, liabilities, capital account. That is at the top level and not divided between three companies.