Does Turbotax handle MLP K-1's, yearly income/loss and sale?

With most K-1's, you just transfer line for line numbers, but an MLP requires input and additional calculations based on supplemental information not on the K-1..how do you enter this information?

If TT handles MLP's, including the sale of, pls let me know which version.
  • On a K--1 if column 6, adjustments to tax basis, is a negative [-minus] number do you subtract it from column 5, original purchase price, or do you add it to column 5 and then subtract the total of both [5 and 6] from column 4, sales proceeds?
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I believe that TurboTax for Business does handle this.

http://turbotax.intuit.com/small-business-taxes/business.jsp
  • how do I report a sale of  MPS shares? Do i need to adjsut the cost basis based on my
    distributions from the partnership? and how do I do this?
  • Can I get Forms 1116, 4952, 8903, 4797 & 6251 needed for MLP repiorting w/ TT Deluxe?  Or do I need the Business version?  And will bus. version auto transfer all info from my 2009 TT Deluxe return?  Esteban 3/6/11
  • I believe it's Turbotax Business. At least I hope so , since I bought it and have just now started using it.
  • If you use it, please let us know if Business handles the input for MLP's. Also, does anyone know if Premier does?
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I haven't figured out handling of selling your shares in a MLP yet  (working on that now), but TurboTax Premier does handle K-1s for MLP distributions.  The trick is that once you get to an item (like 13T)  which has multiple parts (for example you might have a J and a T  for 13)which requires that you enter information from the supplemental information, you enter each item on a separate line  (like the A and J for example), then when you get to an item like T which says STMT,  you enter a T but leave the amount blank in TurboTax.  When you Continue and go to the next screen in TurboTax, it will ask you for all the detail for 13 T from the supplemental information.  It is still a little tricky at that point because the wording will not be exactly the same so you still have to figure it out.  You may also have to leave the deductions not directly allocable blank if you don't have any and it will not ask for the Directly Allocable deductions until you continue again (poor design in the software to make it so tricky).  Hope this helps.
  • TT for business seems to be handling my MLPs ok. At least it is asking me all the right questions and is addressing every line on my K-1s.
    Now if I could only get one of my MLPs to send me my K-1, I'd be happy. Here it is March 29 and their web site states that it is not available yet.
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I sold four energy MLP's last year and suffered the lack of information as to how Turbo Tax requires what information.  Eventually I consulted a tax advisor and then figured it out.  For a sale, you need to indicate that the MLP investment was "liquidated", and then through a sale.  It will then get you to a "Enter Sale Prices" worksheet with two columns:  Regular Gain or Loss and AMT Gain or Loss.  After inputing the gross sale price and commission/sales expense in the first column, there are three inputs you need to make for both the Regular gain/loss and the AMT side.

The first is the Partnership Basis.  For the Regular Gain or Loss, it is your gross cost of first acquiring the shares.  For the AMT side, it is the Regular Gain or Loss basis you just inputed plus the "Alternative Minimum Tax Adjustment"  9Column 10) on your Sales Worksheet supplied by your MLP along with it's K1.  If this amount is shown as a negative, you subtract from your Regular basis.

The second is the Ordinary Gain.  For the Regular Gain or Loss side, it is shown in Column 8 of the Sales Worksheet supplied by the MLP.  For the Ordinary Gain on the AMT side, you take the Regular Gain or Loss Ordinary Gain you just inputed and adjust by the same column 10 of the Sales Worksheet supplied by the MLP.  It column 10 is a negative amount, for instance, you subtract it from the Regular ordinary gain.

As for the 1250 columns, I have no input since my sales never involved those.

As for yearly income, loss etc, Turbo Tax asked for the K1 data on those corresponding to MLP's K1 sent to you.  No problem.
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