Does anyone know if ETP will provide the required K-1 Partnership Cash Distribution Form PRIOR to April 15th ???
Guess I complicated my tax process for a couple hundred buck in dividends
Guess I are stoopid !!!
If you have partnerships requiring k-1 forms,
you do not have to mess with them if you put them in ira accounts. that's how i solved this problem. i have found k-1 forms always come way too late and hold up processing your taxes for regular stock accounts.
Why would you put a tax deferred investment in a tax defferal account? Particularly when if you have more than $1000 you IRA - yes your IRA - must file a tax return and pay an additional tax that begins at 15% and goes to 35%!
Incidentally, K-1 forms are available on line at www.k1support.com. All but one of my MLPs had them there by March 6th. That is plently of time to get my taxes done.
As to how to file - USE TURBO TAX. Then you simply put the numbers from your K-1 into the program. Turbo both keeps track of suspended losses and fills out all the forms. Simnce it only takes about 5 minutes per MLP, no whining allowed.
Happy to not be alone with this problem of K-1 reporting! I received mine from ETP a few weeks ago. Call them at (800)792-7904 to find out where your K-1 is.
If anyone out there can tell me how to report these numbers on my income tax return, I will be really grateful. I've read the instructions from IRS but can't figure out anything except the part that says "you can't take a loss if reported on Line 1."
Distributions shown in box 19 are considered to be a "reduction in your capital account". Distributions are actually the dividends they paid you during the year. Now, why would you have to reduce your investment by that amount?
Does this really save you any money in the long run?
Again, anyone out there who can help us fill out of income tax returns in the USA, please help!
The box 19 info counts as a reduction in your basis in the partnership, at least until you reach zero basis. In other words, if you bought 100 shares at $40, your original basis is $4000. Each year you reduce that by the amount in Box 19 and use the adjusted basis as your cost when you sell the shares. If you'd owned the shares for 2 years and received $500 total from Box 19 and then sold the shares, your effective purchase price on Schedule D would be $3500, not $4000. It gets more complicated if your adjusted basis gets to zero. A good general set of instructions for filling out your US taxes from a partnership K-1 is http://www.irs.gov/pub/irs-pdf/i1065sk1.pdf.
Hope that helps a little!
The difference between tax basis on the K-1 and purchase price represents your overall gain. A portion of that representing recapture will be spiked out on the Sales Schedule and will be taxed as Ordinary income. The balance will be Capital Gain or loss. Unfortunately, theres no way to predict the amount of recapture.
Your message makes little sense in part.
The taxable percentage will vary from holder to holder but is about 90% tax deferred on average.
Recapture? Are you talking about when you sell or what? That again will vary. Need to look at your K-1 and figure out the difference between purchase price and tax basis on K-1.
The K-1 wqas avaiolable several WEEKS ago at www.k1support.com. It itakes about 5 minutes to enter the data into TurboTax. Whuining is not necessary, but a bit of DD would be appropriate. Definately worth those 5 minutes to enter the data yourself and eliminate that unnecessary accountant.
Re to 620
"Guess I complicated my tax process for a couple hundred buck in dividends"
It is a distribution, not a dividend, there is a huge difference at tax time.
Distributions are tax advantaged.
And as I and others have posted:
You will need to own between $5K and $10K minimum to justify the inconvenience of tax forms.
It sounds much worse than it is. Just fill in the blanks on the form as instructed. However, it keeps the wimps out of the mix. Just for serious investors. ETP has a total return of +170% in 5 years. You could have owned GE at -66%, or Dow chem at -78%. Their dividends are easier to pay taxes on.
Let's see +170 vs -66. Which is better?
It might have an 100%+ rise again in the next five years, if past becomes present and resource transportation is in high demand. Time on tax forms is a small price to pay for that kind of potential.