Total disposition of MLP when units are held in two different brokerage accounts

[Boyan]

Hey everyone,

I would like to be very careful not to spark a redundant discussion about how to record total disposition of MLP units - that has been well documented in this forum before in a very exhaustive manner. I'm good with recording final disposition and have done it before - easy.

What I'm seeking today is feedback on how to do this very same thing (record the sale) when the units are split between 2 accounts. The MLP has correctly identified my total ownership throughout the years by combining the units from both brokerages so I get one K1 each year which is accurate in terms of my total ownership unit quantity.

Clearly I'll coordinate the disposition of my units by executing two sell transactions with each brokerage and end up with two 1099-Bs and one K1 final sale schedule at the end of the year.

Here's the rub -

a) even in a limit sell order there's no guarantee that the units will sell at the same exact price on each brokerage platform so I will achieve total disposition alright but at some slight selling price difference between the 2 lots of units

b) how do I enter these two transactions to appear as one? What would the basis be for each, recall that I will get one K1 final sale, not two where it won't distinguish between which lot came from which brokerage and the 2 lots will have slightly different selling price?

Thank you
~B

[Mike9241]

The MLP will provide a supplemental sales schedule.  it will have all the info you need to compute - ordinary income, short and long term capital gain

it will even tell you the form and even when necessary the line number on the form. 

to make it easy split the amounts in proportion to the number of shares held in each account if the sales schedule doesn't split them for you. 

technically you don't have to split the reporting.  with sales of an MLP only the sales proceeds are reported to the IRS not the adjusted cost basis.   as you know the brokers' statements don't reflect the proper cost basis.