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

[nexchap]

@poncho_mike Line 20Z ought to correspond to the Operating Loss, and any 1231 gain/loss would correspond to the Form 4797 long term loss.  It looks like the fix is as simple as just copying the values you have entered on the 'regular' side over to the 'QBI' side for those missing values.

[poncho_mike]

I have tried that, it gives me an error.  I'm going to post a series of images so I make sure where I enter data.

In the first image is the TT window where it asks for more information.  I think I have that figured out, with the exception of the "Other Deductions".  I thought that might be the data in Box 13, but TT doesn't like it when I put that information in.

When I put data in "Other Deductions", it wants me to state that I need to modify the data in Statement A.  If it doesn't want the amounts in Box 13, what is it wanting?

And what box corresponds to Reid Dividends?  Is that the Rental Income (Loss) in the second box.  I have one K-1 with a low dollar value in this location.

I appreciate all your help.  I'm just not understanding this.  It seems like if I enter the data once, TT should know where to populate it rather than me having to enter it twice and guess whether I got it right.

Mike

[nexchap]

@poncho_mike You only need to check the boxes that apply to your K-1.  If the K-1 doesn't report REIT dividends, don't check the box.  Then the error would go away.  Similarly, you're checking a box to see that "Values on Statement A need to be changed", and also checking "None of these apply".  You have to go with one or the other.

[poncho_mike]

@nexchap 

One of the basic problems I'm facing is that on the "We need some information about your 199A income" page, I'm not sure where to find thenumbers for "Other Deductions".   I posted a breakdown of the expanded statement showing the box number and data provided by ET, USAC, and SUN. 

Where do I get the "Other Deductions number from?   I tried using the data in Box 13 here, but it seems to be an issue.

[nexchap]

@poncho_mike Given that TT seems to think "other deduction" requires entries into the "uncommon adjustment" form, I'm not sure if anything on your K-1 would qualify.  But I'm not a CPA, so that's not a tax opinion -- just my ignorance.  To really figure out if you have any of those items, and to be comfortable with revisiting the issue every year that you own partnerships, you're going to need to get some tax advice.  TT can be used to get the right numbers to the right form, but it hasn't automated the data gathering in the same way that it has for W-2s or 1099's.

[poncho_mike]

@nexchap 

I figured out how to get rid of my errors and get the cumulative QBI deductions to properly show up.

I had to go into the K-1s and determine what the QBI should be.  I went into my old Turbotax programs for prior years and updated with the properly handled K-1s.  The numbers were essentially the same as the operating loss.

When I got to the screen that asked about QBI carryovers, I entered the value I came up with.  Then on the next screen, I had to fill in the boxes with the correct values for each year.  These numbers in the boxes must total up to the total entered on the previous screen.  I had to correct the QBI data for both ET and the ET reporting USAC.  

Based on earlier comments, it sounds like if I hold ET long enough, my basis will go to zero and there will be a whole different set of issues.   The accumulated capital loss is currently about 15% of the original basis, so it should be a number of years before this becomes an issue.

When I was trying to understand how the QBI worked, I saw a video on Youtube that said that you could avoid paying tax entirely if you held the stock long enough to become deceased.  The stock would pass on to your heirs at a stepped up basis (based on the current tax code).   I'm in my 60s, so that could become a possibility.

[markernst]

For 2024 Taxes, this was exactly what I needed. Use the reference income from the back of the K-1, and split it out as shown here. FYI when you do this, you can include box 1 and box 2 income on the last PTP.

Thank you!

@poncho_mike @nexchap 

[poncho_mike]

I'm not the person you should be thanking.  Credit for sorting this out goes to @nexchap and @Mike9241 .

I get my investing information from a number of places.  Energy Transfer sounded like a great deal, it paid dividends far in excess of what you could get through treasuries and most dividend paying stocks.  What none of the investing articles mentioned what how how much of a pain the K-1s and later the K-3s create for the average person.  Before I invest in anything now, I check to see if dividends are reported on a K-1 or 1099.

[RobSchiffer]

Is Energy Transfer LP an oil or gas property that does not limit your liability?

[PatriciaV]

You can research this company yourself: https://www.energytransfer.com

@RobSchiffer