I received a K-1 from Energy Transfer, which is a MLP. It owns stock in two other MLPs, Sunoco LP and USA Compression Partners. A summary of the K-1 data in section 3 is shown, and there is a supplement that breaks the K-1 data up for the other businesses on a supplemental page (attached at the bottom). Based on previous conversations on the community, I entered it as 4 different K-1s: Energy Transfer, Energy Transfer reporting SUN, Energy Transfer reporting USAC, and Energy Transfer reporting USAC REIT.
The data for SUN is broken into two K-1s because in prior years, SUN reported Box 1 and Box 2 numbers. I applied all of the SUN information against Sun Box 1, and only the REIT numbers in Box 2. This year, SUN reported no REIT income or loss. This year, ET reported both Box 1 and Box 2. Box 2 was only -$2. Is there a need for reporting a $2 loss? The impact to taxes will be minimal and it seems like it would simplify the reporting.
After reporting the numbers on the supplement into each of the K-1s, there is a question "We see you have Section 199A income". For Energy Transfer, the income comes from the partnership that created the K-1. How do I answer this question for ET reporting USAC and ET Reporting SUN?
My breakout of the K-1 data is shown below:
