1. I purchased additional shares of EPD this year and this is the first time I have purchased new shares after my original purchase. How do I handle that in TurboTax? When I set up the K1 the first time it asked for all that info, but now it is not and I am not sure how to enter it.
You should get only 1 k-1, which will report both unless the latest purchase used a different identification, like a grantor trust where the first was in your name personally.
2. I did not sell any shares of the other K1s I have. Do I need to only enter the K1 information from the company, or is there something else I need to do? Or do I not worry about cost basis and such when I sell?
only the k-1 info.
For practical purposes, you can skip sections J, K, and L because TuboTax doesn't use them for anything.
When you sell as part of the K-1 package, you'll get a sales schedule that will provide the information to compute your correct tax basis in the shares sold. The thing you may not be aware of is the section 751 recapture (ordinary income) that will occur when you sell. This can more than offset the PTP losses you weren't able to deduct because they are treated as passive losses. So as not to double-tax you on the recapture, is treated as an increase to your basis.
An oversimplified view of 751 recapture is that when you sell your partnership interest, you're deemed to have sold its depreciable assets at their fair market value, which results in depreciation recapture. Under partnership tax law is treated as 751 ordinary income. It will also be reported on line 20AB of the K-1.
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