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Enterprise Products Partners L.P. Message Board

  • hannover1940 hannover1940 Mar 24, 2012 12:59 PM Flag

    One K1 vs 5 K1's question

    Bought EPD in 2011, so did not have to deal previously with "5 virtual K1's" issue.

    Noted in reading previous messages to this board, that some are using the simpler file 1 K1 approach rather than creating 5 K1's in Turbo Tax.

    Question - if you file 1 K1 - what do you do for values for BOX 13T* and BOX 20Y* ?? The K1 from shows "STMT", but the Supplemental K1 schedule for EPD show values.

    Seems that this forces you to creat 5 K1's unless you use the numbers from the EPD column on the Supplemental K1.

    Also, I am assuming that if filing 5 K1's, the beginning and ending capitol accounts for the other 4 MLP's is zero.

    Thank you in advance for any help here.

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    • Pretty obvious...added the 5 values for the 13T and 20Y stuff together to get the combined EPD number.

    • part 3 of 3:
      Alternatively, if you still felt it was necessary to use the virtual K-1s for the year of sale, I think you have a point. Then I would use $0 for proceeds and basis. Mark each as final. I think that each of these will result in the same tax. I have not experimented to make sure.

      • 1 Reply to rudfox
      • Thank you for your response and comments.

        I should have mentioned that I did NOT sell in 2011. If fact, my plan is to hold for awhile - for the distributions / dividends. I am retired and supplement my income with dividends from stocks and REITs. I invested in several MLPs to diversity my holdings and to get some tax free (until I sell) distributions.

    • part 2.
      If you bought but did not sell, then see my suggested procedure on another recent thread. I suspect you saw it, and it may have seemed too complex. You may think it did not follow the rules rigorously. I am sure that it could be summarized in a much shorter way. Here is a summary:

      The virtual K-1s are a way to keep a running total of the deferred losses as well as get income from those partnerships. On your eventual last sale of EPD, you get to deduct those deferred losses. The virtual K-1s are not needed once they have served the purpose.

    • part 1.
      Did you sell? If not, you don't need sales figures for even EPD.

      If you bought and sold in the same year, there is no good reason to not just use the revised numbers. One word of (what I think is) wisdom: the EPD basis is the absolute value of the box L "Withdrawals & Distributions" box of the final EPD K-1.

    • Suggest you go to search and type in "K-1 item 13". You will be led to a discussion thread started 4/4/11 addressing your questions, items #13 and #20. My take from the discussion was that because T5 (Employer's W-2 wages) was zero, I did not have to bother entering any item 13 info (although if you own other MLP's where this entry is not zero, the discussion indicates that even for EPD you may then need to somehow enter item 13 info). Concerning item #20, turbotax does guide you to entry of 20A and 20V. The discussion concerning item #20 suggested it applied to nontaxable accounts (eg an IRÅ) and it seemed from what I could tell that there was no need to enter the X3 and various Y values for taxable accounts (which is where my EPD holdings are). Hope this helps.

      • 1 Reply to johnenh
      • It's best to enter all the information on the K-1 rather than second guessing whether you think it's necessary/makes any difference.
        How much time do you save by missing a couple of boxes?

        As you say, for the 13T you may still get a deduction if you have other MLPs with non zero W-2 wages because the 13T numbers for all your K-1s get netted together.

        Just enter everything from the K-1 is safest.
        You probably spend more time considering whether an item is necessary than it would take to just enter it.

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