I posted this on the ARLP board since it had the largest w-2 wages showing on my K-1:
OK, well since I am not getting any deduction this year (thanks to NGLS, grrr) I guess it doesn't matter.
Was getting a $900 domestic production activities deduction until I entered my NGLS K-1.
Well since the deduction is based on net income from DP, increasing the expenses would likely decrease the income and lower the deduction. Kind of surprising how many MLPs don't have W2 wages. I'm not sure what that means; perhaps they're not operating their properties themselves?
If you really want to understand this, download the instructions for Form 8903 from the IRS website.
By the way, how many folks have noticed that you're supposed to include yout IDC and depletion expense as an increase to "total expenses directly allocable to DPGR"
You need to take MLPs out of the schedule D imported from your brokerage. The Turbotax section for partnership disposition will automatically create schedule D entries, so if you imported from the brokerage you would end up with duplicate schedule D entries.
First, don't import them. Second, did you sell your entire interest? (If not, it gets kind of tricky). If you did and they're all long term holdings (or all short term) just tell TT you made a total disposition and enter the appropriate numbers in TT for all lots as one. (sale price, adjusted basis and amount of ordinary income). All that stuff is on the Sales Schedule supplied with the K1 (or thats where the instructions are on how to calculate what you need). TT will do the rest; ordinary income goes on Form 4797 and CG on Sched D (this year on Form 8949 first)