ET is a tiered PTP and the IRS has not clarified whether the income from one tier can offset the loss from another tier
from the instructions
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.
As to your situation, the easiest thing is to report everything on one k-1 because you disposed of all your units all the passive losses from the various tiers are allowed.
Be sure to use the supplemental sales schedule when reporting capital gain/ loss because that's the only way to know your proper tax basis (the broker does not) which is done through the 1099-B/Schedule D not the k-1 whereas the ordinary income recapture is reported through the k-1 and not on Schedule D
sales price on k-1 is this ordinary income. your basis in it is zero. this ordinary income increases your tax basis (see sales schedule) for capital gain/loss purposes
if you had this last year and used multiple k-1's to report each tier. respond back if you need help in how to handle this in Turbotax
