This is a little confusing - what I think people should be looking for is the "sale proceeds" for the NGLS shares to figure total gain/loss (assuming you know your original purchase price(s). That would be the number of TRGP shares you received X TRGP price on merger day OR number of NGLS shares X .62 X TRGP price. (Not sure why Fido has different numbers (19.39 vs 20.59)). If we're lucky, Targa will explain all this on the 2016 K1 for NGLS, but don't count on it.
Fidelity shows my basis in the merger shares as $20.59. What Loss are you talking about? I imagine that transaction will generate significant ordinary income as well as a LT Cap Loss depending on when you bought. And we'll get to use all those annual losses that were suspended
Did you have a number in Box 11E? That's also taxable income (Cancellation of Debt). Did you have a number in Box 13J or 20T1? Those can sometimes be used to reduce the Box 1 number. If you had entries in Box 11F1 and 11F2 (usually detailed on the supplemental information page along with 20T1), that's probably taxable income as well.
The conventional wisdom is you have to own (overnight) when items of income and loss are assigned to partners. Generally the last day of the month but that varies from partnership to partnership
While they certainly appear to close most activity (like Cap Gains) on a monthly basis, I'm not sure its the same with COD. I sold LINE in March 2015 and still got COD (although only a few pennies per unit)
That would essentially be your basis as of 12/31/15. When you sell, LINE will give you your basis adjustment. The K1 support site also has a gain/loss calculator that will tell you as of 12/31/15, what your ordinary income and cap gain/loss will be if you sold on that date. After you login and say "I agree", etc, look at the left hand column and scroll down
The income is unrelated to your IRA, NOT to Line. I think a better question is why did IRAs get lumped in with charitable organizations who ARE subject to tax on UBTI, Its not as if you are never going to pay taxes on your IRA, Its fully taxable when you withdraw funds and even Roth is funded with "taxed" money. That's "double taxation"
The conventional wisdom has been as long as you do not own an MLP when monthly income/loss is assigned (the first or last day of each month depending on the specific MLP), and did not receive distributions, that your K1 would have all zeros. Not sure if that is correct, but I can tell you I sold my LINE position in early March 2015 and Box 11E (COD) was about 3 CENTS per unit
You cannot use losses from one MLP to offset income from another MLP in a taxable account. I believe the same rules apply to IRAs. Some say you can carryover negative UBTI and use it to offset positive UBTI in future years for the same MLP. There are lots of opinions and lots of confusion on this issue and its difficult to find the right answer.
Its definitely a "kick in the pants". However it does increase your basis which mean you'll have less gain when you sell (or a greater loss)
UBTI does not apply to taxable accounts. But COD IS taxable income and goes on Line 21 of you return and gets taxed as ordinary income. In a retirement account COD is considered UBTI. If total UBTI (Box 20V) exceeds $1K, your IRA custodian is supposed to a file a 990T return and pay tax from your funds.
Technically if your have more than $1k of UBTI in your retirement accounts (including 401Ks and IRAs both Traditional and Roth), the custodian is supposed to file a 990 return and pay the tax. Now a lot of custodians ignore that. I'd be surprised if your 401K custodian even gets a copy of your K1. The KMI/KMP merger brought a lot of this to light. Every year the IRS requires more and more electronic reporting of this stuff as well.
Restructuring of debt can cause taxable income to be passed through to you by an MLP. Check out the LINE message board on Yahoo for some sad tales. To make it worse, it appears that also counts as UBTI and can cause your IRA to file a tax return and pay tax. Hopefully VNR will not do this.