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Enterprise Products Partners L.P. Message Board

  • lizahuang54321 lizahuang54321 Mar 29, 2011 11:41 PM Flag

    Turbotax limitation

    So how exactly does this Turbotax limit manifest itself? All reports say TT has a limit of 30 partnership K-1s (form 1065). As I expected 32 K-1s this year for the first time, I expected to have to do some tricks to get my information into TT. However EPD was the last of the 32 to arrive and it took it OK. So now I have entered 32 K-1s without any complaint from the software.

    So, is there really a limit and if so what is the limit? And how does it manifest itself if you try to enter more? I hope it gives an error message rather than just accepting the input but not generating all the forms.

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    • My post was intended for but I posted that on this thread by accident. So I was trying to summarize my understanding of abter1's post.

      If I over- or miss-interpreted some things, I would like to know.

      My biggest joy was that there was not some kind of big surprise accumulated UBTI waiting when I sold an MLP that had had a succession of negative or low UBTI.

    • I don't think you get to carry forward the negatives from previous years unless your Custodian files a 990T return for your IRA in each of those years. And why do you think you can sum the negatives but ignore positives from previous years?

      By the way, you can read UBTI messages for the last three years and you'll all kinds of different answers. Its very difficult to know which, if any, are correct.

    • This is my attempt to summarize my understanding at this time:


      For investments in your IRA generate UBTI, in a given year, effective UBTI for the year is the sum of

      a. each POSITIVE Line 20V of all IRA MLPs which were not sold

      b. for each totally sold MLP, (Line 20V minus all previous
      *negative* 20V of same MLP) if that sub-summation is positive.
      [ignore previous positive 20V amounts.]

      If the sum is over $1000, your custodian fills out tax return, and pays tax on the amount over $1000 based on the "Federal Income Tax Rate Schedule for Estates and Trusts". The custodian will normally charge for doing the return. Amounts are paid from the IRA.


      [I am not sure that the math is not performed for each IRA independently, but that doesn't affect me for the foreseeable future.]

    • Thanks. Did that K-1 show a positive UBTI (20V) value?

    • In fact, I bought and sold EEP in 2010 so that was the first and only EEP K-1 I received.

    • "I understand that UBTI did not matter to you in this case, but I was wondering about what might happen with MLPs in an IRA"

      I assume you're question is about UBTI upon sale of an mlp in an IRA. The first $1000 of positive UBTI is deductible. And negative UBTI from prior years can be used to offset positive UBTI.

    • I have a question on your EEP final K-1, which you had sold to reduce your number of K-1s. I assume that the UBTI (box 20V) showed negative values in the previous years. What happened to the UBTI on that final K-1?

      I understand that UBTI did not matter to you in this case, but I was wondering about what might happen with MLPs in an IRA.

    • Looks to me like this 30 K-1 limit in TT is a hoax. I have my 32 K-s for 2010 entered and have printed and looked over the forms and everything seems to be there. There is some post on IV from a couple of months ago where someone said he has entered 35 K-1s with no problems. So either there is no limit or it is higher. Anyone want to try entering dummy K-1s to see how high they can go.

      The good news for me: I am no longer limited to 30 K-1s. I can buy more MLPs if I want.

      The bad news: I am not limited to 30 K-1s. I can buy more.

      Got my eye on EPB. Thought I couldn't buy without causing me TT problems. Now it seems I can.

    • TurboTax BASIC will handle everything just like the other versions. Don't waste your money by buying Deluxe. Of course, you maight have a problem finding it in a retail store but Amazon selles it.

    • TT Deluxe is sufficient. Last I looked though we cannot import EPD k-1s into TT, but that's not a big deal. Just follow the interview and repeat for the other four using supplemental sheet.

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