Wal, Liza knows more about K1s than most "experts". I can get free help from a Turbotax CPA.
It's quicker to ask Liza and you may notice that she is very generous with her assistance, plus I'm very confident about her advice.
Thanks for your help Liza.
For the first time, I downloaded tax documents into Turbotax this year and so far I'm not happy with the result. It showed that I sold 700 shares of BIP for more than $24,000.....a big capital gain....and it never happened. The stocks are still in my account. The first thing I thought when I saw that "sale" was
"Why would I sell BIP, it's one of my favorites". Of course the TDAmeritrade 1099 doesn't show any sale.
Any idea how that phantom sale might have happened? I checked the 1099 online to make sure it hadn't been updated.
I'm also having problems with K1s. I can't make changes to the figures shown in the downloaded forms. I have started deleting them and putting in new ones manually. The way that the downloaded forms show up, I have trouble figuring them out and I can't correct entries. I can only input figures where Turbotax asks me to.
Not long ago you posted some tips on K1s. Do you remember the approximate date? Thanks.
Not only are you a bore and a boor, in recent weeks or months your mental functioning has declined noticeably. I doubt that I will waste my time again responding to someone who needs help. I advised you to get your wife's opinion on whether consultation with a Psychiatrist or Psychologist might be beneficial, but judging from your opinion of your mental powers I doubt if you have talked with her about that.
I seriously think that before too long he may be wearing one of those white jackets with long sleeves that wrap around and fasten behind the back. He has progressively deteriorated in recent weeks.
Norris, this is some sincere advice, and I don't mean it in a critical way. Ask your wife to tell you her thoughts on your relations with other people, and ask her if she thinks you might benefit from consultation with a psychologist or psychiatrist.
mr.phil, the basis of a partnership is not what you paid for it, although that is part of it.
Other factors include your share of partnership income or gain, including tax exempt income,
your share of the excess of the deduction for depletion (other than oil and gas depletion) over the basis of the property subject to depletion,
your increased share of partnership liabilities (probably nothing)
your share of partnership nondeductible expenses that are not capital expenses,
your share of partnership losses and deductions including capital losses,
and the amount of your deduction for depletion of partnership oil and gas properties.
And there are restrictions and rules on how those items are applied.
Does Fidelity keep track of those things? If so, I may switch to Fidelity.
The signature is the broker’s, NOT yours. Make sure you speak to the broker’s employee who handles this 990-T so he/she knows to forward your explanation and relevant prior years’ K-1s and 990-Ts to the IRS. (Attach a cover note with directions so you don’t get forgotten in a potential host of 990-ts being sent to the IRS.) If you keep an MLP in an IRA for a number of years, the 990-T packet will grow a bit larger with each annual submission. (I provide the packet, as I can’t imagine a broker going to the trouble when hardly anyone uses this carryforward procedure . . . . One of the IRS specialists said that by providing a complete history for reference - prior K-1s & 990-Ts - the less likely I am to be questioned. And she emphasized the short explanatory sheet. (I cite a brief summary of prior years’ carryforwards and conclude with the current carryforward.) I got the strong impression from both IRS folks that MLPs for individual IRA owners were not exactly a focus of attention in light of the 990-T being an all-purpose form for charities, churches, colleges and universities, political organizations, and umpteen other non-taxable organizations. Comparatively, MLPs in IRAs are small potatoes.
ronharv • Mar 11, 2013 11:11 AM
Here are the lines for Form 990-T and UBTI that I fill in based on TD Ameritrade’s 990-T from 2010 (the last year their tax sub-contractor did it) plus what two different IRS specialists advised me to do. Both IRS specialists emphasized attaching a brief explanatory statement about the current loss carryforward updating and what the prior years’ numbers were. (Do note that I’m not an accountant nor do I have any special tax expertise.) Numbers from one MLP are NOT applicable to another entity.
Check Box 408(e) in Section B at top left.
Box C: I just put in my Dec.31st IRA value.
Org. name is TD Ameritrade for me.
Address listed by broker is FBO Ronald Harvey and broker’s PO Box # or main address
City, etc. is broker’s (As you know, only the IRA trustee can submit a 990-T.)
Box D: Employer ID # from broker (this will not change) and is initially issued by the IRS
Box E: #900099
Box J: Determine from your broker just who signs off on the 990-T plus that person’s office phone #. (This may or may not be the same person who reviews the 990-Ts. In my case they‘re different. And I’ve let them know exactly what I’m doing.)
Part I, Line 5: UBTI gain or loss for the current tax year. Same # in Columns A & C.
Part I, Line 13: Same # as Line 5 in both columns.
Part II, Line 29: 0
Line 30: Same as Line 13
Line 31: Total loss carryovers from prior year(s). If you haven’t submitted 990-T losses from a prior year or years, check with your broker’s tax dept. about paying a penalty to do this. Ameritrade charges a token late fee, but I don’t know whether the IRS allows a few months of tardiness or a year or more, so this could be complicated.
Line 32: As directed
Line 33: 0 (assuming you’re in UBTI loss mode only, but $1,000 against gains)
Line 34: As directed
Zeros on Lines 36, 39,40e,41,42,43,45,47
Part V: Lines 1-3 as directed (I check the first two “No” and leave Line 3 blank)
Sched. A: Check “No”
I'm beginning to think that MLPs should be a life-time investment when in a taxable account. Does anyone know a satisfactory way of figuring the correct basis when selling? Some of the needed figures seem very difficult or impossible to find, and not on the K1s.
I think you are making a bad mistake in attacking Liza. She has always exhibited a great amount of knowledge about MLPs, Trusts and other stocks.
I tried out the time-saving step of downloading my 1099s from TDAmeritrade, and it's been a disaster.
In my tax return that I'm working on, Turbotax added $43,605 to my modest dividends, which would increase my tax by well over $16,000. Then, to add insult to injury, Turbotax did not list any tax exempt dividends, when I actually have substantial tax exempt dividends listed on my 1099s, from Municipal Bond Funds. I looked online to see if TDA had updated my 1099s........no. I deleted the 1099s from Turbotax and downloaded them again. No change.....or my taxes went up, I didn't notice for sure. I can update the dividends in Turbotax and I see the correct figures, but the extra $43,000 still shows up when I look at the Income Summary. The really maddening fact is that I've been unable to access the 1040 form in TT to see what's causing the problem. Has anyone else had problems like this? Is there any way to access the individual forms, once you have started the guided questionaire method in Turbotax?
I guess it will be Monday before I can try to get Turbotax to explain.