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Get your taxes done using TurboTax
Thank you nexchap for your answer!
I actually bought and sold all my shares of MLPs in 2020 and considering how difficult it is for novices like me to report K-1 forms, I am not planning to invest in MLPs anymore, at least in the near future!
As for the MLP whose K-1 form has the following line:
20AH1: Bonus Depreciation Adjustment for Most Non-Conforming States: 5
I have this corresponding Sales Schedules:
It seems like the 5$ difference between the Cumulative Adjustment to Basis (-34) and Ord Income (27) after Adjustment for Bonus Depreciation and the original Cumulative Adjustment to Basis (-39) and Ord Income (32) corresponds to the 5$ of 20AH1: Bonus Depreciation Adjustment for Most Non-Conforming States.
Therefore it seems that my cost basis is higher for state taxes and my Ord income lower? If I don't correct in my state taxes and use the numbers of my 1040, I will therefore pay a little bit more for my state taxes? That's what I meant earlier by ignoring it for my state taxes, even if it means paying a little more than what I should pay. Does it make sense?