US Treasury Int reported on K-1

[mlpinvestor]

@Anonymous_ Thanks for all your help.

All right, one last question.  Since I’ll be paper filing, do I need to send in everything Turbotax includes in the “return only” file?  That is, should I include copies of the beneficiary K-1s, Statement A’s, additional information statements, etc.?  Thanks again.

[Anonymous_]

Yes, all official forms required for filing.

[mlpinvestor]

@Anonymous_ Will do.

Well, maybe just one more question.  This trust owns a few MLPs.  On the beneficiaries’ individual returns, is it really necessary to break these out separately as their own k-1s?  Turbotax says so, but if every item of ptp income is categorized appropriately on the beneficiary k-1 already, I don’t see why it matters.  It asks if any of the 199A dividends are from ptps as opposed to reits, then it yells at you if you say yes.  Does this actually make a difference?

Thanks again, again.

[Anonymous_]

Yeah, I'd break those down and enter them separately if the trust owns several MLPs.

[mlpinvestor]

@Anonymous_ Okay.  The reason I ask is because I can’t really tell where a couple of the ptp items on statement A come from within the beneficiary K-1.  Ordinary business income is straightforward enough to disaggregate, since it appears in both places, but then it also shows a category of “other” on statement A that I can’t decipher.  I can’t tell what that is coming from, so I can subtract it from the right box on the beneficiary K-1 to avoid double reporting.

[TD2023]

Champ, thanks again. However, the US Treasury interest is in a Money Market Fund that pays it out as a dividend. Stating US Treasury Interest makes it sound like it is part of interest income, but it is included in dividend income. How would you state this on the K-1? 

[Anonymous_]

The interest would still be taxable at the federal level.

[Mike9241]

right beneath the line for dividend income on the k-1 is a line for US interest included.