Do I need to file a Section 751 Statement for each PTP disposed of? How do I attach this for e-filing?

[danbon1]

I have one of the PTP that changed structure from partnership to corporation and includes instruction to file a Section 751 statement and provides wording for the statement. How do I attach this to my tax file? Do I need to do this for every PTP when I dispose of shares?

[nexchap · Accepted solution]

The only method in TT to do this is to go to "Forms" mode and open the "Blank" form.  This gives you a page that you can print out with your return where you can add anything you want (e.g., 751 statements).  Unfortunately though, this form won't be part of anything you efile.  You have to print and mail the return in.

[danbon1]

One of other answers on the exchange indicated that there was a way to attach it so that it could still be e-filed. I am using Premier, if that matters. The presence of this other answer on the exchange is reason I submitted question to gain clarification. Please respond to second part of question. Thank you.

[nexchap]

I'm aware of one idea that involves using an explanation statement that is meant for another purpose, but will efile.  That probably works great to get the return into the IRS system.  But I don't know enough about how the IRS computers feel about it to know if its a good idea or not.

As to each PTP, generally you'll need to include a statement for each PTP where you sold shares.  And you may need a Sec 754 statement for each PTP where you bought shares.  Look closely at the verbiage in the K-1 instructions to see what each PTP requires, since the need to include a statement is governed by their accounting decisions.  If you do need multiple statements, you can combine them (something like "The taxpayer has reported ordinary income upon the disposition of units in the Partnerships below ...."  Include all the required boilerplate text, but then provide a list of the partnerships).