Investors & landlords

A few comments:

• The biggest issue I see here is whether you know your tax basis in this investment; especially given how long you indicated this has been held.  Many MLP K-1's do indicate tax basis, but having your own tax basis schedule to confirm that figure is always best.
• Next, hopefully you understand how many units are owned in order to determine the basis per unit; not sure if the buyback and final K-1 are the result of the same event.
• MLP's are generally large partnerships and getting items updated can be tedious.  If the K-1 you received should be prorated, between your Dad's final tax return, and the trust return, then just make these adjustments.  I don't know if TT provides the ability to include a statement indicating the reason for any adjustment.  
• I agree with @Anonymous_ in that it isn't necessary to request a revised K-1; in fact I doubt the MLP will even do so.  [edit.  No question two K-1's would be best and technically correct, my experience with MLP's is it is doubtful they will accommodate the request]
• I also agree that you get a step-up in basis as a result of the death of your father. Don't forget to factor that step-up into the determination of the gain or loss on the buyback by the MLP.
• The facts indicate a "large negative adjusted basis".  
  • Is the final K-1 final period, or just a final to your Dad as a result of his passing and the trust will receive future K-1's?
  • Are there suspended losses?  I would assume so.  This could have implications on utilization as a result of the step-up.