Energy Transfer

[10SCOCH]

Can the USAC and SUN numbers on ET's K-1 just be added to ET's numbers for a single TT input?

[Mike9241]

if you read some of the notes in the cover letter to the K-1 package you may see wording to the effect that the IRS has never clarified how a PTP should report PTPs that it owns.  to keep things simple, I just report on 1 k-1. you may appreciate that if you ever dispose of Energy Transfer because the details for the disposal as provided in a sales schedule that will accompany the k-1 are consolidated. so if reported separately you have to do something in TurboTax on those other two Turbotax k-1s to free up their suspended losses.   I used 3 k-1s and when I sold. I went back to ET to ask for details for each. never got a reply. 

[nexchap]

Given that a gain in one PTP can't be used to offset a loss in another PTP (e.g., USAC income offsetting a SUN loss), failing to split the PTPs will open you to that problem, and the record keeping to ensure you don't violate the rule.

In addition, if ET ever divests one of those positions, the disposition can only free up suspended losses from the divested PTP.  So this is another record keeping problem that splitting the K-1's solves.

On sale, Ordinary Gain will be split between the different entities, so that's no problem.  The basis adjustment only needs to be done once (for the top level Cap Gain calculation), so also no issue.