1) TT asks "describe the partnership". By default, "All of my investmentsin this activity is at risk". How to figure out what's the correct answer from Form 1065, Schedule K-1?
look at Part II Box L. if ending capital is positive you're at risk ( that's your end of the year tax basis)
2) In my K-1, box 20, 4th entry is "* STMT". How to incorporate it in the filing in TT
look at the second physical page of the k-1 (will say "supplemental K-1 information statement for tax year 2022) for details on box 20. note 3 PTP's are listed. as provided by ET. ET is a tiered PTP so it is not clear whether you should be reporting everything on 1 k-1 or enter the detail using 3 k-1's - one for each.
many of the items for box 20 are irrelevant for 1040 tax purposes.
does Energy Transfer LP receive income from specified services and lists few things. How to decide the answer is Yes or No.
No ET is not a SSTB
Please note that box 16 says K-3 is attached while its actually not and the attachments to the form says it will be issued in Jun, 2023 but I've not seen K-3s for past years though they should have been issued in June of previous years.
did you read the k-1 cover letter about the k-3, well please read
The Partnership reports items of international tax relevance to our partners on Schedule K-3. As we disclose in our quarterly distribution press releases, all of our income is effectively connected with a United States trade or business. However, a limited number of unitholders (primarily foreign unitholders, unitholders computing a foreign tax credit on their tax return and certain corporate and/or partnership unitholders) may need the detailed information disclosed on Schedule K-3 for their specific reporting requirements. The Schedule K-3 will be available online at www.taxpackagesupport.com/et by June 30, 2023 and is not included in the enclosed tax package. Notwithstanding the aforementioned, to the extent our Schedule K-3 is applicable to your return filing needs, we encourage you to review the information contained on this form when available and refer to the appropriate federal laws and guidance or consult with your tax advisor.
UNLESS YOU NOTIFY US THROUGH THE WEB PORTAL, THE TOLL-FREE CALL CENTER, OR IN WRITING THAT YOU WISH TO RECEIVE A PAPER COPY OF SCHEDULE K-3 BY MAIL, YOU ARE DEEMED TO CONSENT TO RECEIVE SCHEDULE K-3 PURSUANT TO THE FOLLOWING PROCEDURES: (1) YOU OR YOUR AUTHORIZED RETURN PREPARER MAY RETRIEVE A DIGITAL COPY OF YOUR SCHEDULE K-3 FROM THE WEB PORTAL; (2) ALTERNATIVELY, YOU OR YOUR AUTHORIZED RETURN PREPARER CAN CALL THE TOLL-FREE CALL CENTER AFTER THE SCHEDULE K-3 HAS BEEN MADE AVAILABLE ON THE WEB PORTAL AND REQUEST THAT A DIGITAL COPY OF THE SCHEDULE K-3 BE DELIVERED VIA EMAIL. IN ALL CASES, YOUR SCHEDULE K-3 WILL BE PROVIDED TO THE INTERNAL REVENUE SERVICE.
so for most taxpayers there will be nothing to report. so they can uncheck the box 16.
otherwise your choices are to file and then amend if necessary or file an extension.
