Energy Transfer Partner K-1 questions

Forum|Forum|2 years ago
March 23, 2024
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I've owned Energy Transfer Partners for several years now. Energy Transfer owns positions in two other MLPs, USA Compression Partners (USAC) and SUN (Sunoco LP). Sunoco reported income in Box 1 and Box 2 in the past. The Energy Transfer Partners K-1 contained one table that consolidated the overall data, plus a separate table where it broke out the data for the other MLPs. Based on input from this forum, I created four K-1 entries for Energy Transfer: ET, USAC, SUN Box 1 and SUN Box 2 (Real estate).

This year, Energy Transfer broke the data up separately. There is still the consolidated K-1, but the breakdown for the other MPLs doesn't show values for all of the sections on the main K-1.

I think the appropriate way to handle this is to fill in the data for the USAC, SUN Box 1, and SUN Box 2 first. Any items on the main K-1 that aren't attributed to USAC or SUN gets attributed to ET. This year, the SUN Box 2 is zero, so there is nothing to report. I also assume I still need to enter a K-1 into Turbotax for Sun BOX 2 with $0 for all entries. In general, I need to report it such that the totals end up matching the main table.

The K-1 called the separate breakout a "Schedule of Separate Passive Activities". All three are PTPs (Publicly Traded Partnerships) and there are limitations on passive activity losses. I don't fully understand how that works.

If anyone is familiar with Energy Transfer Partners, can you weigh in on whether I'm entering this data correctly? I have copied the two tables in the images below.

Thanks.

Mike9241

Level 15

most line dont matter which k-1 becuase they are not business items so you can put th amounts on the ET K-1

here are the boxes where it doesn't matter:

5 (interest income) ,6a(dividend income) ,6b Qualified dividends),9a Long-term capital gain 13A (cash contributions), 13H (investment interest expense), 13K Excess business interest expense - good luck with this because TurboTax does not handle this item nor the form. If the partnership reports EBIE to the partner, the partner is required to file Form 8990. See the Instructions for Form 8990 for additional information.
For tax years beginning after 2017, the partner’s basis in its partnership interest at the end of the tax year is reduced (but not below zero) by the amount of excess business interest allocated to the partner for the tax year, even if the partner isn't allowed a deduction for the allocated excess business interest in the year of the basis reduction. If the partner disposes of a partnership interest in which the basis has been reduced before all of the allocated excess business interest was used, the partner increases its basis immediately before the sale for the amount not yet deducted.

13C (nondeductible expenses), 19A (distributions)

since each is treated as a separate entity you are entitled to a QBI deduction for the SUN's QBI (20% of 36)

nothing for USAC since no QBI, Nothing for ET since a loss.

LHoch

Level 2

I have a lot of ZZ codes in Box 20 that will have no impact on my return as I live in a state that does not have a state income tax and this is not in a IRA/Roth or Tax Exempt ownership. These are Box 20 ZZ1, ZZ2, ZZ3, ZZ4 ($0 on all 3), ZZ5, ZZ6 and ZZ7. Since they will have no impact on my return I assume that these do not need to be entered but want to confirm.

Also I have a Box 20 ZZ8 that is "Partner Basis Items and Remedial Items for Section 163(j). Will this have any effect on my taxes, does it need to be entered and if so where?

I appreciate any help I can get on this!

Thanks

Larry

skyeye4444

Level 2

The excess business interest expense listed reflects business interest not available for a deduction in the current year. You would have to list it on Form 8990 in order to carry it over to next year. If you aren't concerned about that, it would likely be OK to skip the Form 8990.

@wjschermer

I am aware that K-1 Part III. Line 13 K. EBIE triggers the need to file Form 8990 for a limited partner in a PTP. Are there other codes , particularly Line 20 which also are entered in/or trigger Form 8990?

Thanks,
Gary

gbacapital

Level 2

The breakout for SUN 2023 DOES include a 'net rental real estate income (loss). Line 2: minus 2, a loss. This is odd, that the screenshot above does not. On my K-1, ET does as well, line 2, a gain of 1. USAC has none. How is it possible for one K-1, as above, to show no line 2 for SUN and another to show a loss? Any input very greatly appreciated.

poncho_mikeAuthor

Level 5

I suspect you have more money invested in ET than I do. My guess is that for some columns, the amount rounds down to $0. If I had double the money invested, there might be a small dollar value there.

I assume your comment : "The breakout for SUN 2023 DOES include a 'net rental real estate income (loss). Line 2: minus 2, a loss." is referring to your K-1, not mine.

Don G

Level 2

Wonder why taxpackagesupport does not have a download for TurboTax?

PatriciaV

Level 15

TurboTax doesn't support the import of Schedule K-1 for any current versions of the software. That may be why you're not seeing a download from taxpackagesupport.

@Don G

**Say "Thanks" by clicking the thumb icon in a post. **Mark the post that answers your question by clicking on "Mark as Best Answer"

Don G

Level 2

TurboTax for years will import a TXF file! You have to have the premium version now. I downloaded TXF k-1s for USAC,MPLX and imported, no problem. I called package support and they said its up to the company to have the TurboTax file available to download. I also have downloaded others over the years. ET has been the only exception so far.