Today QRE posted the K-1 on their web site for downloading. After going over it I found that I have a very large non-passive income amount to claim for taxes. I have 7 MLP's , I do not have any non-passive income on any of them. Has anyone checked their K-1 today from QRE, I assume if I have this everyone else will also. As limited partners all of our income should be passive, or am I wrong in assuming such? My total non-passive was about half of the amount of income for box 1.
Which box are you referring to?
I already got my K-1 and entered it into Turbotax.
Nothing struck me as out of the ordinary.
If you indicated what box you mean and how much you were allocated per unit, we could comment.
I have my first K-1. I use Turbo tax and have a hard time transferring all the info. And when I get thru it,Turbo has a balance of $0.00 under my K-1 heading. I read somewhere you had to write in manually do to complexities. Any help is appreciated.
I got a decent box 1 amount, which however was fully offset by 13J intangible drilling costs and 20T depletion, resulting in no net tax. Nothing else in boxes 2-11.
So don't follow what you are referring to.
"Nonpassive" does not mean "nontaxable", and all income of a federal income tax partnership is "pass through". Non-passive means non-business, portfolio income like interest on cash balances, and (more unlikely) qualified dividend income from stocks owned by the partnership or capital gain from portfolio assets or raw land. It's rare to have a material amount of nonpassive income from a partnership.
I am not sure about my previous comment. I will not get my first K-1 until next year. I have read that MLP's usually distribute a "pass through" portion of the distribution which may be somewhere in the neighborhood of 20% and it is the portion that is subject to taxation. The 80% distribution portion goes to decrease your capital account and once the account reaches a 0 balance (this takes many years) then it becomes taxable income.