How to correctly enter the K-1 data for Energy Transfer Partners

[AzizS]

Late to this party but have a question regarding state schedule. I am unable to decipher if I need to file any State returns as I have pretty much all 0's or negative numbers here, with the exception of column 12. Can someone guide me on that front? Buying $60 for each of these states seems to be an overkill, when I am not even going to be getting back anything here. Might as well just write a check to each state for $10.

Also, can someone tell me what unit are these numbers? Is this a dollar amount or do I need to convert this somehow to come up with a dollar amount for the shares here. How can I do that?

Also, I have 3 state schedules, i gather from previous posts that they might be for 3 separate K1's that I need to file for ET, Sunoco LP and USAC. But none of them mention which is for which. How do you guys tell which goes under what?

[AbrahamT]

From what I can see these number are very minimal and does not  really play any taxable effect. Even the figures in Column 12 represent income for the puposes of the business interst expense limitation "exemption". See HERE. 

Also see HERE  under the caption "General" to see what that business interest limitation is. The figures under column 12 are also too insignificant when deciding if gross receipts over the last 3 years was under 25 million dollars and only pertain to the business interset expense limitation which in your case is 2 bucks. See column 11. In your case, I would disregard it. 

If your other K-1's show similar figures like this, I would disregard them as well. I am making the assumption that this is the only state information that is attached to your federal k-1 for the 3 companies, correct? You didn't get a seperate state K-1 schedule for each of these companies as well, right? 

[AzizS]

Thanks for taking the time to look into this. Much appreciated @AbrahamT.

The other two look like this:
SUN

USAC:

However, they are all part of the same K-1 and nothing specific to State K-1 (at least nothing yet and nothing in this K-1 to suggest that something might be coming my way in that regard.)
It does state this though:

On the other hand, in another K-1 It has similar numbers but it does say that State info. is provided as well:

Are these numbers in dollar amounts or shares? I don't think i have that many shares in my possession.

And state Info:

[AbrahamT]

As I already mentioned to you earlier, columns 1-12  really play no significant role as to state reporting requirements. Certainly not column 13 as there are no figures there to report. Disregard 2022 State Information  schedule. It doesn't apply to you.

On the other K-1, which it does say that state info is reported as well, once again the info reflected in the state info is just explaining that the figures presented in the statement may be needed to prepare various state tax refurns to reflect that income. Since everything is zero, no returns need to be prepared. The figures in the gross receipts column would play a role if you would have had business interest expense associated with it as explained earlier. Because there is no business interest expense recorded, you can disregard it.

Have a nice rest of your day.

[cchu01]

I'm trying to work through From 8990 and hoping to get some guidance from you.  I'm a W-2 worker and a limited partner in a partnership that generated this K-1.  

In Section I, for the line 1 Current year business interest expense, is this the amount on my K1, 20N Business Interest Expense or the sum of 20N and 13K Excess Business Interest Expense?

In Section II, for the line 6 Tentative taxable income, Is this the amount on my K1, the line 1 of Ordinary Business Income (loss) or on my 1040, the line 11?

Any help is greatly appreciated.  Thanks!

Do I have any "Business Interest Expense" and "Business Interest Income" in Section I and III on Form 8990? How should I come up with "Adjusted taxable income", from my 1040? And may I assume there is 0 "Allowable Business Interest Expense" on line 30 and my K-1 amount should somehow end up in line 31, "Disallowed business interest expense" for "Carryforward"? I sincerely apologize for so many questions, as a new investor in limited partnership, there is quite a bit learning for me to do, so any help and/or insight you can offer would be greatly appreciated. Thx!

However, I'm not sure  

EBIE is excess business interest expense.

note if 13K is zero you do not file form 8990. leave the line blank

line 13 Code K. Excess business interest expense. If the partnership reports excess business interest expense to the partner, the partner is required to file Form 8990. See the Instructions for Form 8990 for additional information.

Turbotax, as you know, does not do form 8990. 

EBIE has nothing to do with whether you take the standard deduction or itemize. so yes you are supposed to file  8990 which would also require filing by mail since there is no way to attach a manually prepare form to the e-file 

[cchu01]

I'm trying to work through From 8990 and hoping to get some guidance from you.  I'm a W-2 worker and a limited partner in a partnership that generated this K-1.  

In Section I, for the line 1 Current year business interest expense, is this the amount on my K1, 20N Business Interest Expense or the sum of 20N and 13K Excess Business Interest Expense?

In Section II, for the line 6 Tentative taxable income, Is this the amount on my K1, the line 1 of Ordinary Business Income (loss) or on my 1040, the line 11?

Any help is greatly appreciated.  Thanks!

[Need_help_on_K1]

I have the same partnership and it shows the same 3 Partners as in the above but my question is when I file K1 for other 2 USAC and SUN what is address, (and Box A Partnerships Employer Identification number) - I see this person has put FEIN found on Supplemental sheet)
 2nd  What do you put for Box K - Partner's share of LibilitIes - Non recourse Ending has a number that is non zero. Do you put this in every K1 or on 1 K1.

3rd - Same question as 2nd for Box L  - Partner's Capital Account analysis. Is the amount entered only on the ET K1 or the other 2 Provided on the SupplEmental K1's.

[Need_help_on_K1]

@Mike9241 @nexchap

My question is for original post quesiton.

[nexchap]

@Need_help_on_K1 None of those will matter when you file.  That's only for your records.  But I've always used whatever unique information is provided, and then defaulted to the parent for anything left blank.

[Need_help_on_K1]

@nexchap

Okay,but 3 separate K1 need to be filed, just filing 1 K1 with Energy Transfer wont work as Part 3, Box 1 - 20V have all combined values for all 3 (From the Supplemental K1 info sheet for ET/ USAC and SUN, so value reported in K1 for ET box 1 ordinary business income(loss) is a combined from Supplemental sheet 1. Seperate PTP Ordinary Bsuiness Incomes from Et+ USAC + SUN). Only Box 20 had more lines than that could fit. Or since the K1 had box 1 - 20 V all combined from all 3 combine, could I combine  lines 20 z- 20Ah11 from  Supplemental K1 and combine all 3 Et/ USAC/ SUN and just put it on the 1 K1 for Energy Transfer?

[nexchap]

@Need_help_on_K1 I'm not sure I understand the question.  You need to enter separate K-1s for ET, USAC, and SUN because the tax rules don't allow you to offset income in one partnership with losses in another.  So TT needs the separate entries to manage carryover and the appropriate release of suspended losses, which means the actual numbers in lines 1-20 matter.  But beyond that, TT doesn't care what address you use, or what's in the nonrecourse loan field, or the capital account.

[Need_help_on_K1]

Got it, thanks!

[poncho_mike]

I was the one who originally started this thread.  Getting K-1 data entered correctly has been a major headache for a couple of years.  I still own ET, having bought it prior to 2020.  In earlier years, entering the Code Z information was problematic.  In 2019 and 2020, I was told to not enter code Z information as it did not affect my tax returns because the values were negative, and QBI only applied when the values were positive.  I followed that advice for those years.  I believe I entered this information correctly for tax year 2021.

Now in preparing my 2022 taxes, Turbotax is telling me that the QBI Passive Op Loss and the Form 4797 Long term loss numbers needs to be entered for 2019 and 2020.   It flags a total of six errors related to ET and the other K-1s associated with ET.

In reviewing the error, I see Turbotax is asking for the QBI Disallowed Passive Losses for previous years  2019 and 2020.  At the bottom of this screen Turbotax states "QBI (Section 199A) losses by year smart worksheet.  Supporting information provided by program.  No Entries are needed."  So I'm guessing because I didn't enter Code Z information for previous years, but did in 2021, that Turbotax thinks I missed something.  

What is the proper way to deal with this?  Go back into older versions of Turbotax and determine what these values should be?

[nexchap]

@poncho_mike I'm not seeing anything on this thread that suggested ignoring negative 20Z values.  Regardless, as TT is flagging, the QBI deduction is cumulative.  The reason is simple:  all the Ordinary Income you report when you sell qualifies as QBI.  But the Ord Income is offset by business losses (box 1 on the K-1) that is reported every year.  If those losses were ignored, clever accountants could game the QBI deduction.  So you report each year, and TT tracks the suspended QBI values until they're needed in the future.

You should be able to fix the errors you're showing by just going to past K-1s and entering the appropriate values into this year's return.  Note that I've seen glitches in TT's carryover routines for QBI, so you may run into this again in future years.

[poncho_mike]

@nexchap 

I talked with people at Turbotax in the early years.  The first year I owned ET, I did not create separate K-1s for each of the entities reporting on the ET K-1.  After talking with members on this board, I broke it into multiple K-1s.   I was getting errors due to the Section 199A entries, and the CPA I talked to told me those numbers did not affect my return, so I could delete them.

Below is an image of  my 2020 K-1.  Which values correspond to Line G, Operating Loss and which numbers correspond to Line L, Form 4797 long-term losses?  If I need to calculate this number, how do I do it?

Thanks for your help.  BTW, last year I paid for CPA assistance and I think I have received more clear answers from community members.