I did not sell any of the mlp this year or any prior years. Here is the k1.
Beginning. Ending
12 J. Profit. .000082%. .000080%
Loss. .000082%. .000082%
Capital. .000082%. .000080%
Beginning Ending
12K. Nonrecourse 29020 26225
Qualified nonrecourse refinancing. 0. 0
Recourse. 0 0
12 L. Beginning capital account. 3089
Capital contributed during year 0
Current income or loss. 107
Other increases or decreases. 0
Withdrawals and distributions. (3204)
Ending capital account (8)
I did not check the box in TT for having all of my investment at risk. Hence, disallowed and allowed losses were on form 6198. Also, I put the the loss of 8 as a long term capital loss.
Now , I believe that all my investment is at risk. I infer that I am at risk based on this information from the K1 instructions for item K: “ Your share of nonrecourse debt increases your tax basis in the partnership interest and allows you to treat distributions as non- taxable return of capital. However, if your current year distributions exceed your tax basis, including non recourse debt allocated to you, the excess distributions are reportable as capital gain.” Hence, the box in TT should be checked stating “ all of my investment in this activity is at risk”.
MLP’s are maddening . I dont want to sell it but I dont want to buy more shares and above all I dont want form 6198 to steal my passive losses.
