The Schedule K-1 for an MLP states that one should not report boxes 1, 10 or 17 if (a) the taxpayer did not materially participate in the activities of the MLP (taxpayer did not), (b) boxes 1, 10, and 17 combine to result in a loss (they do), and (c) the taxpayer did not dispose of his entire interest in the MLP during 2022 (taxpayer did not).
However, if one follows the instructions from the MLP on TurboTax, then Form 8895, the QBI Deduction Summary, and the PTP Worksheet do not seem to populate correctly. For example, the PTP Worksheet will not record Unallowed Losses under column (g) of the PTP Worksheet. Furthermore, putting amounts in boxes 1, 10, and 17 that differ from those on the Schedule K-1 would seem to require filing Form 8082 for inconsistent treatment.
Question: Should one follow the instructions of the MLP not to report boxes 1, 10, and 17 or report boxes 1, 10, and 17 in TurboTax as they are on Schedule K-1?
