I'm in a few of these K-1s and I was wondering if anyone knew what made some of the numbers positive and some of the numbers negative at the end of the year? It seems random to me. I figured they are all pulling O&G out of the ground, selling it, and taking a depletion. So I can't figure out why some of them are negative so I get a tax write-off while some are positive and I pay more taxes on it.
I just picked this board but whether its SDR, SDT, or any number of the ones that send me K-1s. What makes some of them send a write-off compared to a tax gain on the partnership? It seems like a total crapshoot at the end of the year where you can make money in the stock but lose money on the K-1 sent off. What factors in it and is there any way to predict which ones are the worst offenders? All things being equal, I would prefer not to invest in one that sends me extra tax gains from ownership at the end of the year.