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Level 2
posted Mar 23, 2020 4:31:00 PM

How is Net Operating Loss calculated on a K1 received from a MLP?

I need to provide information on NOL carryforward (if any) to my brokerage for my IRA so they can determine if they need to file a form 990-T for my account.  Although I thought it was only negative UBTI from prior years that could offset positive UBTI for current year (and only for the same source/MLP), so I'm not really sure "NOL" is applicable, but that's what they asked for.  This applies to K1 forms I get from MLPs (about a dozen of them).

I still am not sure exactly how NOL is calculated.  Apparently a "passive activity loss" is the sum of boxes 1 (operating income), 8, 9a, and 10 but is this NOL?  I don't think so but I'm not sure.

Does anyone know this for sure?  Thanks!

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1 Replies
Expert Alumni
Mar 26, 2020 1:27:41 PM

For the most part, a net operating loss (NOL) would not apply to a partnership. It would only apply to a regular (C) corporation or to an individual.

 

For an individual, a NOL would be created when you had business losses that where more than your non-business income.

 

Do you think they are requesting information regarding a personal NOL?