If it is in an IRA you can forget about the K-1 and reporting to the IRS. NPINDUS stated it perfectly. Nothing to sort out. Outside a tax sheltered account you will have to deal with cap gain/loss (gain/loss on distribution on excess of basis, etc.) when you sell and annual reporting of the K-1. Most of the tax software gives you line by line instructions on how to report annual K-1.
Wally, do you think NRZ is the buyer? Or is there some other major player in the MSR business? I have a 12,000+ share position in NRZ with a basis of 6.77 that was 100% acquired from the spin-off and via DRIP's which represents approx. 10% of my portfolio so I am already over weighted however I am reluctant to sell as I am a firm believer in NRZ's management. Always appreciate your and BOb's perspectives. GLTA longs.