What happens if you don't enter a separate K-1 for each entity, but rather sum the values in one TurboTax K-1 entry for EPD? It seems that the values reported on the EPD K-1 are sums of the parts that are broken down on the Supplemental K-1 Info Statement.
What happens when, after owning EPD for years, the "partners Capitol Account" approaches and finally get to $00. Does it go negative??
Thanks in advance.
ETP did not mail their out "weeks" ago. It was about March 15th. Then ETE was able to complete their K-1 and finally EPD used all that data to complete theirs. As to COP, what does that have to do with MLPs. Conoco Phillips is not either a MLP or a partnership. You certainly have issues.
Yes, and so I am forced to go to a different reply and reply to that which of course screws up the whole continuity of the thread.
deb - I recently received such a step up in basis. Ken is correct in his literal interpretation of the IRS tax code relating to MLPs but the reality is often something very different.
I do think that this is an area with the steady expansion of MLPs where we will be getting some clarification and new and clearer rules. Currently the IRS people basically have no clue as to what is up.
Gobayby...thanks for your reply. Like I said, the Seeking Alpha guy probably has it wrong because when my Mom died I received the stepped up basis (from EPD on K-1 schedule) for her EPD shares and I continued to buy EPD afterwards. I know the tax issues are complex and like Obamacare probably the majority of folks don't understand it. Thanks again!
Ownership of MLP "units" are treated the same as shares in a corporation.They are both capital assets and receive a step-up in basis in the beneficiary's hands. They also receive long term status, (if that matters at the time). You are correct about income instruments: annuities, pensions, etc. I don't know what you are referring to as "recapture". Any strange, goofy tax items, whether income or deductions will be passed through to you on your K-!.
First let me say that I am not a Seeking Alpha fan or subscriber but they keep showing up as a stock news source. In an article by Reel Ken dated 3/26/13 he states that MLP heirs may not get the stepped-up basis as follows: "Ah, but when I die, my heirs receive a step up in basis... freedom at last. I hate to burst this bubble, but this probably isn't so. Though any capital gain portion receives a step-up, items of ordinary income (Annuities, IRAs, Pensions, IRD, etc) are not stepped-up at death. This recapture avoidance "rumor" was started because the Tax Code provides that heirs will not incur the recapture tax when units are transferred to them from the estate. The Code never says recapture is stepped-up. It is silent on a subsequent sale by the heirs.". Is this really true or is Mr. Ken just grabbing headline? I would appreciate this knowledgeable massage board opinion. Thank!
Hrtenps obviously cannot read the information at the K-1 support site.
It is truly unfortunate that people do not get the difficulty in getting out a K-1 when you own or owned parts of other companies.
SXL and APU had to complete their K-1 info before ETP could complete theirs.
Then ETP had to complete their K-1 before ETE could do their report.
Finally with the data from EPD and combining the data from the others EPD could finally get their K-1 data out.
A question to hrtenps - When did you get your final corrected 1099B from your broker? Since they were not sent out until 3/15, you could not have had it more than a few days. What is your complaint? Will you complain next year when EPD will get its K-1 out approximately March 1st that you are waiting for the other K-1s and your broker statement?