@LaJolla You're asking good questions and digging into the details, but all I can tell you is that I've never made any adjustments to Sched E in the years I've done my own MLPs. The way TT automatically handled it seemed to be correct. That includes checking off all the right boxes.
- The line you're referring to about checking 28(e) refers to S corps (at least that's what it says on the TT version of the Sched E), so doesn't apply to a MLP.
- I've never had TT create two separate K-1 worksheets for a given MLP. The worksheet always showed current year entries and carryover entries.
- Whenever suspended losses for an existing MLP (one that I haven't disposed of) are released they show up in 28(g) under a 'PYA' label.
- When the MLP is sold, the losses are released and show up as "Nonpassive", allowing them to offset other non-MLP income.
If you're concerned that there's a bug in the way TT handles K-1s and Sched E, I'd suggest posting the question separately. You might get a more definitive answer from one of the TT employees.
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**Note also, I'm not a Tax Preparer/CPA. Just a volunteer, seasoned, TurboTax user.
Use any advice accordingly!
