Need help in understanding how to enter a K-1 with multiple companies reporting on the same K-1 and multiple activities

[turtax_live]

@nexchap  How do I report the complete sale of Energy Transfer LP given that it has three companies and multiple lines within two of the companies?  I bought it in 2022 and followed your directions in this thread as well as instructions for regular MLP's:

https://ttlc.intuit.com/community/taxes/discussion/mlp-stock-sale-and-schedule-k/00/2508847/page/2

In 2023, I sold all shares.  When TurboTax asks me to "Describe the Partnership," do I only check "Disposed of a portion of my interest in partnership" for the K-1 where I entered information for Parts 1 and 2 and enter sales information for all shares?  Thanks in advance for your help.

[nexchap]

@turtax_live If you've been following the instructions on ET, you've been splitting the K-1s each year so that the 3 companies, and their respective box 1/2/3 incomes, are all on separate K-1s.  If so, then you'd just "sell" each of them by checking the "This partnership ended in 2023" box, then "Complete disposition".  For K-1s that report Ord Gain, you'd have to do the entries so that no Cap Gain is reported by the K-1 (Enter ord gain for Reg and AMT purposes, its inverse for basis, and 0 for sales price).  Otherwise, you'd just enter 0s.

[turtax_live]

@nexchap 

I have five K-1’s:

ENERGY TRANSFER LP Reporting ET Line 1

ENERGY TRANSFER LP Reporting ET Line 2

ENERGY TRANSFER LP Reporting USAC (only had 1 of boxes 1-3 checked)

ENERGY TRANSFER LP Reporting SUN Line 1

ENERGY TRANSFER LP Reporting SUN Line 2

I’m not clear on what you mean by “For K-1s that report Ord Gain.” If I understood correctly, I get the ordinary gain from the Sales Schedule, which only has one row for the three companies combined. If the row called “GAIN SUBJECT TO RECAPTURE AS ORDINARY INCOME“ is ordinary gain, which company / line has a non-zero ordinary gain?

The only lines that are broken out by company are Part III items:

Passive Income

1 Separate PTP Ordinary Business Income (Loss)

2 Net Rental Real Estate Income (Loss)

10 Net Section 1231 Gain (Loss)

17A Post-1986 Depreciation Adjustment

17B Adjusted Gain or Loss

Line 20 items:

N Business Interest Expense - Already Deducted on Line 1

V Total Unrelated Business Taxable Income Included on Schedule K-1, Page 1

Z Section 199A PTP Income Included on Schedule K-1, Lines 1 and 2

AB Section 751 Gain (Loss) Not Included in Line 20V, 20Z, 20ZZ1 or 20ZZ2

AE Excess Taxable Income

AG Gross Receipts For section 448(c)

ZZ1 UBTI Included on Schedule K-1, Lines 1 and 2

ZZ2 UBTI from Debt Financed Dividend and Interest Income Included on Schedule K-1, Page 1

ZZ3 Depreciation Adjustment for Non-Conforming States

ZZ4 Section 1231 Gain (Loss) Adjustment for Non-Conforming States

ZZ5 AMT Depreciation Adjustment for Non-Conforming States

ZZ6 Entity Level State Income Tax Included in Box 1

ZZ7 Gross Income from Operations

ZZ8 Partner Basis Items and Remedial Items for Section 163(j)

ZZ9 Partnership Interest Disposition Gain/(Loss) Adjustment for Section 163(j)

ZZ10 Nontaxable Adjustment to Capital Account

ZZ11 E&P Adjustment Due to Depreciation and Asset Sales

To calculate the basis that I want to use to replace the cost basis in 1099-B, is it correct to take values from the Sales Schedule and set

basis = (Column 4 / AVERAGE PURCHASE PRICE / INITIAL BASIS AMOUNT)

- (Column 5 / CUMULATIVE ADJUSTMENTS TO BASIS)

+ (Column 7 / GAIN SUBJECT TO RECAPTURE AS ORDINARY INCOME)

Thanks.

[nexchap]

@turtax_live Line 20AB in total should match the Ord Gain on the Sales Schedule, and is how you can split it across the K-1s.  Your formula for recalculating basis looks correct.