Thanks. I had thought I saw a 13T5 W2 number for EPD, but I now think I scanned across and read the 13T4 value instead of the 13T5 number. Dang.
I found this statement in a document: "MLPs Taxed As C-Corps. There are five shipping MLPs (i.e., Capital Product Partners L.P., Golar LNG Partners LP, KNOT Offshore Partners LP, Navios Maritime Partners, L.P., and Teekay Offshore Partners, L.P.), which elect to be taxed as corporations for U.S. federal income tax purposes. "
I would put a link, but that usually does not work. I see NAPTP has similar info. So that would seem to say there would be no UBTI.
Anyway, do you think this quote is no longer true? If you got a GMLP K-1, that would be a good reason to think that something changed.
I split the parts into separate K-1s for Turbotax. Two of them have small suspended passive losses. Can I just create a final K-1 for those two to take those losses, or is that something I cannot do unless I sell out of EPD?
...online. Note when you import/enter into Turbotax, the fact that you have a value in line 3 (Other rental income) will give an error because it is mixed with the pipeline business. The workaround is to make a new K-1 in TT that is marked Other Rental Activities instead of Business. Remove the line 3 value from the primary K-1, and enter that value onto line 3 of the new Turbotax K-1.
New K-1 is one of those confusing 2-in-one K1s. It shows positive UBTI for the EEP portion and negative UBTI for the MEP portion. Do you think this would be a one time thing, or do you think EEP would be likely to continue with similar positive UBTI in future years?
The basis stayed the same as before the shenanigans but the basis for an MLP/PTP is not going to be the same as what you paid. Distributions are mostly return of capital and reduce the basis. You did not lose anything because you got cash back at some time. If this is a shock to you, you are not alone. Brokers don't really educate or test you on this. Sorry to break it all to you, but the MLP/PTP does not issue dividends; it issues distributions. Once you have all of your money back, the basis is ZERO. Further distributions are all taxed.
The partnerships track the basis for you, and issue a report on a K-1 in about March each year for the previous year. Understanding it fully is difficult. If you just give that paper to your tax preparer, he should be able to act on it. Some of us do some study and are able to enter the information into Turbotax (you may need a higher version-- dunno).
To learn more, do some searching. You will find info and discussions.
I don't know the whole thing. I am not expert. But a lot of cash was given to ACMP holders. So I presume the amount of assets per share is bigger, so longer term it should make more money, but there is much less cash to distribute in the near term. Despite the convoluted methods, I think that the original WPZ was the buyer.
I presume you mean Merrill Edge. One thing to consider in comparing brokers is any fee for involuntary reorganization-- as is going on now with WPZ. I see Merrill Edge charges $30 for a voluntary reorganization (such as a tender that you accept).
I don't know. I suspect there may be one of those more complicated 3-in-1 K-1s. I hope I am overly-pessimistic.
There will be some CIL, and I don't know if that is treated as return of capital or what.
Thank you! That clears things up.
Based on your description, I would think the ACMP action would be treated as a 1.0612:1 split. It matches what I see in my account, tho some CIL will be expected. Thanks again.