Basically most reporting is the same. The major difference is that on a partial disposition, none of the suspended losses are released. You also have an issue with anything on 13k. There is no clear guidance on how to handle it on a partial disposition, and you probably need to file Form 8990
My comments on ET copied from its tax package
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.
In other words, do you report everything on 1 K-1 or 4? You'll see the problem with 4; should one be liquidated or merged into another and upon your total or even partial disposition.
I can tell you from experience (I used 4 K-1s) that, upon your disposal, the sales schedule will not be broken down for each entity. There will be no guidance on what to do if one is merged into another if you do separate K-1s.
