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Tjr520
Returning Member

How to merge passive losses from MLP merger with surviving MLP sold in same year?

My ETP units merged into ET this year. Sold all of ET before year's end. 

Does the K-1 for ETP have the income for 2018 prior to merger and the ETP breakout on K-1 for ET is all post-merger?

How then to recapture losses from ETP prior to the merger that became fully taxable when I sold ET?

1 Best answer

Accepted Solutions
nexchap
Level 8

How to merge passive losses from MLP merger with surviving MLP sold in same year?

The ETP K-1 includes results from Jan 1 to merger, and the ET K-1 includes results from merger to sale date.  So you have to add them together.

In this case, because the data entry for ET requires you to enter separate K-1s for ET, ETP, SUN, and USAC (and mark all of them as sold), the simplest way to handle ETP is probably to just add them together and have a single K-1 (this assumes the FEIN didn't change).

**Say "Thanks" by clicking the thumb icon in a post
**Note also, I'm not a Tax Preparer/CPA. Just a volunteer. seasoned, TurboTax user. Use any advice accordingly!

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3 Replies
nexchap
Level 8

How to merge passive losses from MLP merger with surviving MLP sold in same year?

The ETP K-1 includes results from Jan 1 to merger, and the ET K-1 includes results from merger to sale date.  So you have to add them together.

In this case, because the data entry for ET requires you to enter separate K-1s for ET, ETP, SUN, and USAC (and mark all of them as sold), the simplest way to handle ETP is probably to just add them together and have a single K-1 (this assumes the FEIN didn't change).

**Say "Thanks" by clicking the thumb icon in a post
**Note also, I'm not a Tax Preparer/CPA. Just a volunteer. seasoned, TurboTax user. Use any advice accordingly!
Tjr520
Returning Member

How to merge passive losses from MLP merger with surviving MLP sold in same year?

Yes, putting one K-1 for ETP summing them together makes sense! On the sale questions, do I put the ordinary gain on ET only and set the ETP, SUN, USAC to 0?
nexchap
Level 8

How to merge passive losses from MLP merger with surviving MLP sold in same year?

Yes
**Say "Thanks" by clicking the thumb icon in a post
**Note also, I'm not a Tax Preparer/CPA. Just a volunteer. seasoned, TurboTax user. Use any advice accordingly!
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