I sold all of my LNCO and used the money to buy LINE. I wish I had waited until now to do it, with the difference at more than $4 a unit. I only got three dollars and less, but even then it was a no-brainer deal.
Right, clydorn, and this year has been especially tough for me because TurboTax hasn't been very helpful. One partnership, BIP, had three sources of income. I finally got TT to drop all error notices by filling out three separate K-1s for BIP so I assume TT will allow me to efile now after I do a final review. I would hate to be the IRS agent reviewing my return. CIT had a bankruptcy, and replaced all my CIT bonds with reorganization bonds. Several different issues were redeemed at different times, each issue for different amounts per bond, so it's really complicated and having two K-1s each for several partnerships and three K-1s for one partnership sure makes for a long tax return.
It would be at least 23 pages if I filed in paper form.
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.
Turbotax marked errors by making boxes red when there was something wrong with them, and wouldn't allow me to efile until all errors were corrected. Code B in box 16 is red. Code B is Gross foreign Income.
I didn't know what to do when TT said "Box 16 Description-1 has been entered for both code D and code E. Use separate K-1 Worksheets to report more than one type of foreign gross income sourced at the entity level." There was a code D, Foreign Gross Income, Passive Category, but no Code E. And what were the other type of income? What was the Description cited by TT? Just a little more detail from TT might have been very helpful.
I tried putting in a code E, which is Foreign Gross Income, General Category, but that still left code B red. I can tell by reading messages to TurboTax that others are having this problem. I sure would appreciate it if someone would tell me how they solved it.
It's difficult to believe that TaxAct could be any worse than TurboTax has been, in allowing this situation to progress all the way to Tax-Day without any effort to help customers who were trying to prepare their tax return with software that just isn't working. I was satisfied that my tax return had been prepared in a form that would be accepted by the IRS, but TurboTax wouldn't let me efile it because it was detecting "errors" that I don't think would really be a problem. I would guess that TT has lost most of its customers who have K1s with more than one type of income.
Thanks Liza. Last year I had no problem with putting all but one income item in the "Business" K1, and only the Rental Income into the Rental K1, but this year TurboTax is giving the error notices for blank income items in the Rental form. Lots of people are complaining to TurboTax. It was really poor customer service to allow this to happen, and still no guidance. I thought I would be able to efile in spite of the error notices, but TT wouldn't let me. TT even rejected the Business K1 for BIP, which was entered exactly like the mailed K1 except Rental was omitted. That was because of the "error" mentioned above. It was a shock to get to April 15th and not be allowed to efile. I had to get an extension, mailing a check for my expected taxes, and hopefully Turbotax will get on the ball and give its customers some guidance. I didn't try to call today, but in a couple of weeks the waiting time may get shorter.
Anyone figure out how to split up the various boxes among two K1 forms for BIP? And I had already done one for Business and another for Rental. Now TurboTax is telling me "Box 16 Description-1 has been entered for both code D and code E. Use separate K-1 Worksheets to report more than one type of foreign gross income sourced at the entity level." There is no code E I can find when scrolling through box 16.
And, does that mean that I have to do four different forms for my BIP and my wife's BIP? The ironic thing about this is that the only reason I'm using TurboTax is that it's supposed to be best for K1s. Now it's indicating errors in my Rental forms because I haven't entered all the income amounts that are in the Business forms, and it's telling me that my Tax Return is still not complicated enough to satisfy TurboTax.
Dang, now you tell me! Turbotax wasted my time by insisting that I had to enter seven K1 forms in my tax return. I think it's going to the IRS. What do you do with your K1s for taxable accounts? You need to spread the word. I think Liza said she did 26 K1 forms in her return, or some huge number. I see posts on MLP boards indicating many thousands of people are making the same mistake. :-)
But if anyone is checking that box they are making a major mistake, because they shouldn't be putting a K1 for an IRA into their tax return.
Yes, we'll just have to wait and see what happens. There will be plenty of "noise" from disappointed investors if the IRS starts enforcing it.
I disagree that a professional would do better. It depends on which professional it is, and I don't have a way to evaluate them. On the other hand, after a long time of seeing Liza's posts on message boards of several stocks that I also own, I'm very confident about her abilities.
I'm glad to see that you were just kidding.
You are right, Norris, and I happened to have 750 LNCO in my IRA. I replaced it with 800 LINE and had 400 bucks left over from the trade. Thanks for the heads-up. I have swapped LINE and LNCO several times, in the IRA only.
wal, I've been audited. Have you? I found that the best strategy is to just speak the truth to an IRS auditor. I could indeed tell the IRS that I relied on advice from someone on a stock message board. However, I am very confident following the advice of Liza when it comes to MLPs and Trusts, and I don't think that following that advice would ever cause me to get audited. You are letting your imagination run wild. If I were to make a mistake in a complicated K1 I would get a letter notifying me of the mistake. If I had not asked for advice from Liza the letter would be telling me that I had paid too much tax.
My experience with keeping some MLPs in an IRA since the mid-80s is that it's not much of a problem, and eliminates the need to file K1s. If you have more than $1,000 in UBTI, Unrelated Business Taxable Income, in one year the IRA pays taxes on the amount over $1,000. UBTI is line 20-V on the K1. It is usually a very small or negative amount. You have certain deductions, like Intangible Drilling Costs, that reduce UBTI and these deductions are used up over quite a few years. You should monitor the UBTI amount every year to see if it is getting too high. I sold OKS after about eight years because the UBTI started to increase, although that didn't happen in my wife's IRA. Investor Relations told me it was because she had owned OKS for a shorter time. I was using up deductions and she hadn't reached that point yet. As far as I know I could buy OKS again and my deductions would be restored. MLPs are tax-advantaged for taxable accounts, but sometimes I put them in my IRA because they happen to be the best buy at the time. It's nice to be able to throw the K1s into a drawer and not worry about them. If you have over $1,000 in UBTI it has nothing to do with your tax return. Your broker will have to file Form 990T and take the tax out of the IRA.