Hello,
I have questions regarding an MLP (oil and gas PTP) .
1. On the K-1 part two, box 12J has all positive percentages for profit, loss, and capital. Box 12K has positive numbers for non-recourse partners share of liabilities. Box 12L has a negative ending partners capital account.
Should I check the TT box for being at risk because the combined total of share of liability and ending capital account is positive, or am I not at risk because only the ending capital account is negative? I believe the negative capital account is taxed as a capital gain.
2. When selling this MLP, there were passive losses allowed and passive losses not allowed. Will the unallowed passive looses be released to offset ordinary income of this MLP sale? If not, the the losses be used to offest other non mlp income?
