Energy transfer partners k1

[AnnMarie]

Just looked at my 2018 Turbo Tax Records file.  I entered each of the same companies individually.  I remember being perplexed when it came to entering Part II J, K and L.  I wound up entering that data into the K-1 for Energy Transfer LP only.  I left those fields blank when entering the K-1's for Sunoco and USAC.  

[nexchap]

@sgiitb85 J, K, and L are for your records only.  They don't become part of your filing with the IRS (you can see this by reviewing what actually prints out when you have TT print a copy of your taxes for filing).  So entering at the top level once, and ignoring for the sub-entities, is fine.

[Anonymous]

Thank you all for your answers on this thread. I'm stuck on this as well; and have spent over 6 hours trying to enter the numbers as 1 company and 3 companies; over and over again. Everytime TT gets stuck on smartcheck saying "Sch K1 Wks-Partnership (ET LP)": Box 20 Code Z has been selected but no Section 199A income has been entered on Statement A". I'm an average person and absolutely do not understand what this means; and TT is not helping by cryptic either. :(

I'll dump using TT for 2021 and go to a CPA for this. And I'll sell off this stock I own immediately; so as not to get bogged down again next year. With COVID and loss of family members; I've realized there is much to life than owning such stocks and tax filing.

[sgiitb85]

I agree. I had a harrowing time this year dealing with so many K-1 just because I bought these LP/MLP stocks. And the bigger problem is that I bought it out retirement account also which has another set or paper requirements. So I will dispose off all these stocks prior to Dec 31st this year and never get into these any more. The money that I make from these stocks is not large enough to deal with these K-1 or go to a CPA.

[levistep]

Any answer for this question yet? I can't figure it out either

[DaveF1006]

`Yes, you will need to enter 3K1's to accommodate Box 20 code Z information. Yes, you will need to list the ETP address for all three K1's. You will enter all box information for the first K1 and then just enter the Box 20Z information for the remaining two. 

If the information doesn't match your supplemental statements, you may need to contact ETP to supply the missing information. 

[taliesin77]

I too will be getting out of these stocks (partnerships?) before the end of 2021.  Entering these K-1's is a nightmare and a ridiculous waste of time....Which sucks because I believe these in general are great for earning income at a low (tax) cost.....but clearly only for the ultra wealthy who can hire a CPA to deal with this filing crap...So, basically another loophole for the wealthy to avoid taxes.

My time is worth more than the few hours I have spent entering these values with just about zero understanding of what the values on these forms even means.

[BKS1]

Just curious on how to handle the Capital accounts.  I own shares in ET and if you break out the information as three reporting entities, entering the income into each of the Capital Account Information sections will cause a Capital Account (CA) balance in each one.   Is it better to show a balance in each entities’ CA or use ET CA balance that ties out to the K-1 section L?    In USAC and SUN, I was going to input the Current Year Net Income but then show same amount as a deduction in Other Increase (Decrease) to force those CA’s to be zero.  Very confusing and not sure if there is a correct way to do this.  Any help would be greatly appreciated.  Thanks in advance.

[tagteam]

Did you read nexchap's post?:

J, K, and L are for your records only.  They don't become part of your filing with the IRS (you can see this by reviewing what actually prints out when you have TT print a copy of your taxes for filing).  So entering at the top level once, and ignoring for the sub-entities, is fine.

[moleratcaptain]

So many of us all had/have the same questions, so to recap the findings:

1) Yes we're to file separate K1s for USAC and SUN for line 20 using their IDs, ET's address, and leaving J, K, L blank. 

2) Don't worry too much about the line 20Z questions regarding Section 199A. I just repeated the figure that was entered on 20Z. And totally guessed at the TT questions by answering "all of my holdings are at risk," "no carryovers." 

3) Don't worry about the numerous state filings unless you have a significant income, as most States technically require a return (even if a loss) but won't come after you unless it's worthwhile. How do you know if you this is significant? Is it via column 1, ordinary inc. I have a lot of figures (I.E. only $33) in column 11, Gross Receipts. 

Other questions: 

4) I have a separate K1 for ET for buys/sales within an IRA/RIRA. When I tried to enter the K1 in TT, I checked that I2 was checked (ET held in a retirement account), and TT stated "Congrats, because this LP is held in a retirement account, you don't have to enter the info, and we're going to delete this K1." Again, I bought and sold ET several times within the IRA, not thinking I'd have to report anything at the time, since it's an IRA. Do I truly not have to do anything? I've seen some articles mentioning that your IRA custodian has to report it, and they pay any taxes out of your acct. I don't see any statements indicating that. Total bought and sold was under $5k, and there are zeros everywhere including the K1, supplemental stmt with USAC/SUN, and various State reporting. There is a transaction and cost basis wksht and box 16 is checked. Don't see evidence of unrelated taxes over $1k (nothing in 20V). 

[nexchap]

@moleratcaptain Purchases or sales in an IRA, whether of a PTP (like ET) or a regular stock, are not reported.  The IRS doesn't care.  They're going to tax your withdrawals, and don't care how many transactions took place along the way.

Your confusion may come from reading about UBTI (Unrelated Business Taxable Income).  This has nothing to do with buying and selling.  If you look at the line 20 codes for ET, one of them will mention UBTI.  If that number is over $1000 (summed across all holdings in the IRA) then the IRA custodian has to file a return.  That's not something you do through Turbotax, but if it applies you probably want to talk to your custodian about it.

[moleratcaptain]

Thank you! That's a relief to know I don't have to do anything with the IRA/RIRA K1 package. Yes, I think I saw that the unrelated business income > $1k was the threshold to determine if the IRA reports on your behalf.  But I didn't see any evidence of Merrill reporting anything, but I see that there's no UBTI listed in line 20V.

Do I need to keep track of anything for my shares in my taxable account or the sold shares from the IRA for cost basis calculations in the future? If I want to sell ET in my taxable, does that involve complicated cost basis calculations (where I may need a CPA) or does TT Premier walk you through that ok?

This whole process make me not want to accumulate shares in fear of increasing whatever columns in the State schedules determines attributable income. 

[nexchap]

@moleratcaptain TT doesn't do anything to help you track basis.  When you sell in the taxable account you'll get information from the partnership to help with the basis calculation, and that's usually enough (though its an area where lots of people still need help).  Note that if you ever let your basis drop below 0 the reporting requirements increase because distributions have to be reported and losses are disallowed.  Overall, it takes time and effort (and potentially a CPA), so keep it in mind if you decide to keep PTPs in your portfolio.

[moleratcaptain]

@nexchap Thank you. I definitely didn't know what I was getting into, and should have researched more. I was leaning towards selling before I get too far along in dividends for cost basis, but also because I won't feel confident in reporting the sale if there's depreciation recapture and whatever else is involved. Thanks again.