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Level 6

Solved

Energy Transfer (ET) Final K1

Forum|Forum|9 months ago
August 24, 2025
1 reply
0 views

I sold my units of ET last year and I got Final K1.

ET has like 5 k1 within one big K1.

My guess is Sales figures (sale same as ordinary income and other boxes 0 in order to prevent TT to create a duplicate 8949) will go to main ET entity.

Q: In Turbo Tax interview question how should I answer Final K1/Complete disposition about partnerships which ended in 2024 along with ET but they are listed within ET?

Complete disposition?

sales and purchase dates? same as main ET

Q: How should I answer sale interview question for other 4 ET entities, Just add 0 for all boxes Sale prices, partnership basis and ordinary gain?

K- Sale Information

In general you only enter Sale and Ordinary gain info. Does it matter if you leave other boxes blank or have to enter 0 in them?

AMT gain and loss

If my column 7/Gain subject to recapture as ordinary income is = 5000 (made up number)

Column 8/AMT gain/loss Adjustment = -100

Q: I should be entering -4900 as AMT gain/loss with TT interview section of K1?

Best answer by Mike9241

Thanks @Mike9241

I have tracked down all carry over looses.

I had ETP which was merged into ET. I did not add carry over losses of ETP into ET as it was not sale and K1 did not show Final K1 and I did not know at that time how to handle it.

I just left it there with TT and it is still there with all information and there is no new information added since merger as there was no K1 for ETP.

I tried 3 methods

Option 1

If I enter Final K1 for ETP and check Partnership end and disposition was NOT sale. It does NOT release carry over losses

Option 2

Check Final K1 for ETP and check complete disposition and use same sale dates as for ET ( since ETP was merged into ET), all losses are released and show up K1 work sheet, Sch E and 4797.

Q: Since ETP was ended while back, does its Partnership Tax ID still work or can cause issues or questions?

Option 3

I can add carry over losses from ETP into ET.

It works well for regular and AMT section within Forms mode of K1 but QBI section I was not able to make it work in the forms mode. or QBI section has to be changed/adjusted within interview mode?

Any thoughts which method to use?

option 2 works by entering in the disposition section 0 as sales price, basis, and ordinary gain. the 751 recapture is reported entirely on the ET k-1. for the 1099-B you only report the sale of ET using the sales schedule to figure basis.

option 3 also works but I think option 2 is simpler because there is no need to move the suspended info from the ETP k-1 to the ET k-1

sam992116Author

Level 6

In public traded partnerships -k1 entities, does pass losses or carry over losses be offset income ONLY from same entity?

ET is one pubic traded partnership but has other partnership within its umbrella. All other partnerships within ET k1 are separate entities?

I sold my ET (all of them). Question I am trying to understand, does all passive loss across all ET entities has to combined or only passive loss be offset by income from same entity (same FEIN)?

Mike9241

Level 15

ET is a tiered PTP and the IRS has not clarified whether the income from one tier can offset the loss from another tier

from the instructions

The passive activity loss limitations provide that individuals and some other types of investors that do not meet certain business participation thresholds may only deduct losses from these activities to the extent of the taxpayer's income from such activities. One of the unique tax issues related to investments in PTPs provides that the passive activity loss limitations are generally applied separately with respect to each PTP that is owned by the taxpayer. However, the application of the passive loss limitations to tiered PTPs is not entirely clear, so you should consult your personal tax advisor as to whether you are subject to the passive loss limitations, and if so, how the information presented below should be reported on your federal and state income tax returns.

As to your situation, the easiest thing is to report everything on one k-1 because you disposed of all your units all the passive losses from the various tiers are allowed.

Be sure to use the supplemental sales schedule when reporting capital gain/ loss because that's the only way to know your proper tax basis (the broker does not) which is done through the 1099-B/Schedule D not the k-1 whereas the ordinary income recapture is reported through the k-1 and not on Schedule D

sales price on k-1 is this ordinary income. your basis in it is zero. this ordinary income increases your tax basis (see sales schedule) for capital gain/loss purposes

if you had this last year and used multiple k-1's to report each tier. respond back if you need help in how to handle this in Turbotax

sam992116Author

Level 6

@Mike9241

Thanks for you input.

Yes I did used Separate K1 last year for ET as it has 3 entities and 2 of these entities have Net Rental real estate income (Box 2 of K1) as well. So there are 5 K1s.

Cost Basis Formula:

My understanding is

Purchase price (Box 4) - Cumulative Adjustment to basis (Box 5) + Gain Subject to Recapture as ordinary Income = Cost basis now to report on 8949/Sch D. Is my assumption correct?

AMT Cost basis: Lets say Box 8 (AMT cost gain/loss adjustment) is -100. It will decrease cost basis or ordinary gain part by this amount for AMT cost basis box on K1?

Adjustment for Bonus Depreciation Box 10 and Box 11 on K1 sale section . I did not see where would I enter this information? or TT will ask me if this information is needed,

In Turbo Tax, K1 interview section of Enter Sale Information.

Which boxes should I enter 0 vs leave them blank ?

Selling Expense

Partnership Basis

1250 Gain