@markmartian
@cookers33
if you are saying your LP investments are not PTPs and they invest only in non-PTP passthrough entities then your work can be simplified. Turbotax (this is strictly a TT issue. professional tax software I have used does not have this limitation) k-1 input only allows an entry either on lines 1,2 or 3, so if your k-1 that has income/loss on more than one of these lines you must use a k-1 input for each. certain items like dividends or interest can be entered on any of the k-1s but other info and amounts that relate to lines 1,2 or 3 must be entered on their respective K-1s
PTPs are a different story. under the tax laws, each PTP must (maybe) stand on its own for tax reporting. if you invest in a partnership that invests in 50 PTPs, then 50 k-1s in Turbotax MAY BE required. what the code, REGS, and IRS have never clarified is what if a PTP has invested (but less than 100%) in another PTP. in this case must each PTP be reported separately.
this is from a PTP information sheet that owns parts of other PTPs
The passive activity loss limitations provide that individuals and some other types of investors that do not meet certain business participation thresholds may only deduct losses from these activities to the extent of the taxpayer's income from such activities. One of the unique tax issues related to investments in PTPs provides that the passive activity loss limitations are generally applied separately with respect to each PTP that is owned by the taxpayer. However, the application of the passive loss limitations to tiered PTPs is not entirely clear, so you should consult your personal tax advisor as to whether you are subject to the passive loss limitations, and if so, how the information presented below should be reported on your federal and state income tax returns.
