First, when it comes to ET, you actually now own positions in USAC and SUN (as well as ETP). ET owns a stake in each, and you own ET, so their results are passed back to you. So when you enter ET, you have to create separate K-1s for each sub-entity. There's a couple reasons for this:
- The IRS rules on PTPs state that losses from one PTP can't be used to offset income from another. So if you sum across all sub-entities, you can violate that rule. Even though a parent PTP owns the shares of the sub-PTPs on your behalf, you still can't violate that rule.
- If the parent sells off one of the sub-entities in the future, you'd be entitled to recognize any prior year suspended losses for that sub-entity. That only works, though, if you've been keeping separate records.
As for the two ETP's, you add them together. The ETP K-1 includes financials from Jan 1 to merger day. The ET sub-K1 includes financials from merger day to 12/31.
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**Note also, I'm not a Tax Preparer/CPA. Just a volunteer, seasoned, TurboTax user.
Use any advice accordingly!
