ETP and SXL merged in 2017 with ETP being the surviving entity. SXL provided a Final K-1 to me but I have been unable to figure out how to select the proper disposition in TT. As I see it, TT provides for 3 kinds of disposition: 1. fully taxable transaction(which it is not), 2. Gift (it isn't), or 3.an installment sale (which it isn't). In point of fact the terms of the merger provide each holder of SXL 1.5 shares of ETP for each share of SXL. Additionally, SXL has a suspended passive loss carryforward which should be added to ETP's suspended passive loss carryforward, and again, TT has no method of transferring the acquired company's carryforward to the successor's carryforward. I understand that I could manually override the successor company carryforward but that leaves no electronic trail. Am I missing something
You'll need to sign in or create an account to connect with an expert.
TT doesn't have an automatic method to process "my company was taken over in a stock-for-stock" transaction. The way I've handled this is to not treat the acquired company as though it has not ended this year, and then resolve it next year:
- Fill out SXL just as though it was an ongoing entity. You'll have suspended losses.
- Fill out ETP as normal too
- Next year, when you fill out your 2018 return, you'll enter ETP as normal and when you get to the questions about carryover losses from prior years you'll add the SXL carryovers to the ETP entries. You can do this, and still keep an electronic record, by using the "Add Supporting Details" option for each entry you're changing.
- Finally, delete the SXL K-1 from your 2018 return.
TT doesn't have an automatic method to process "my company was taken over in a stock-for-stock" transaction. The way I've handled this is to not treat the acquired company as though it has not ended this year, and then resolve it next year:
- Fill out SXL just as though it was an ongoing entity. You'll have suspended losses.
- Fill out ETP as normal too
- Next year, when you fill out your 2018 return, you'll enter ETP as normal and when you get to the questions about carryover losses from prior years you'll add the SXL carryovers to the ETP entries. You can do this, and still keep an electronic record, by using the "Add Supporting Details" option for each entry you're changing.
- Finally, delete the SXL K-1 from your 2018 return.
Still have questions?
Make a postAsk questions and learn more about your taxes and finances.
Nem2
New Member
Clueless_in_Taxland
Level 2
ppumgrad
Level 3
ppumgrad
Level 3
poncho_mike
Level 3
Did the information on this page answer your question?
You have clicked a link to a site outside of the TurboTax Community. By clicking "Continue", you will leave the Community and be taken to that site instead.