In schedule K-1 I 've received for Energy Transfer LP, I see that "Box 22 : More than one activity for passive activity purposes" is checked and there are 3 columns in supplemental statement ET, USAC, and SUN. For USAC and SUN, all of the entries are 0 except for "BOX 20, AH: Gross receipts".
From previous posts, I found that I need to enter 3 different K-1 for each. Below are my questions related to those additional K-1 for USAC and SUN.
1) Previous posts states that I can use ET's address, and title them something like "ENERGY TRANSFER (SUN entries). Is this correct?
2) What should I do with Section J, K and L? just leave them blank?
3) In the "Describe the Partnership" section, I wasn't sure what I should choose. I've chosen "all of my investments in this activity is at risk" for ET but is this also the case for USAC and SUN?
Thanks,
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You can use ET's address and title. Section J, K and L do not affect your income or losses, so you can leave that blank.
Your investment would be at risk if you had not deducted more in the way of losses on your tax return than you had invested. So, if there is a loss in the current year and it will not reduce your basis to below $0 in the current year, then all of your investment would be at risk.
Thanks Thomas!
Follow up question -- for the additional K-1 forms for USAC and SUN, do you fill in the values from Part I and Part II of this form? For example, part II, item K I have an ending nonrecourse liability of $850 -- should I enter that value on on the K-1's for USAC and SUN or should that only appear on the K-1 for ET?
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