You enter the code with the drop-down list, which I think is T. Then you click the appropriate QuickZoom button and enter the various pieces of T. Unless you have T5 W2 Wages, you could save your time and not enter T values. Entering T values could save tax, but without W2 it will not. WOW!!! There *are* T5 W2 wages this year. Guess I will go through that this year since you found it to be worthwhile. Thanks!
You will now have to enter the 13T values for all of your K-1s that show it, even if they make the benefit go down.
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.
On the COV investors site, there is now a link to a document "February 03, 2015
Medtronic - Covidien Tax FAQ". I would post a link, but posts with links don't always survive. Page 6 says this:
"The transactions will generally be reported by Medtronic and its agents for tax
purposes as (1) a sale at the fair market value of Medtronic, Inc. shares as of the
closing of the transaction (in the case of Medtronic Inc. shareholders), and (2) a sale
of Covidien ordinary shares for cash plus the fair market value of Medtronic plc
shares received as of the closing (in the case of Covidien plc shareholders).
Medtronic and its agents intend to use the closing price per share of Medtronic, Inc.
of $76.95 on January 23, 2015, as the fair market value for each share of Medtronic
plc for tax reporting purposes. "
Here is what I think I read... When things clear up:
1. Each holderof a unit of prior ACMP Access Midstream Partners will get 1 unit of the newest WPZ CUSIP 96949L105 each for unit ACMP held.
2. Each holder a unit of prior WPZ CUSIP 96950F104 will end up with 0.86672 shares of the newest CUSIP 96949L105 WPZ.
I understand there are some intermediate steps.
I am not saying that this is correct, but it is my best interpretation. Is there a description somewhere that is a clear as what I wrote, (but correct if what I wrote is not)?
Thanks. I just did that.... I had 50 COV. Realized gain/loss report shows I got $5,356.93 as the proceeds. I will treat that as a SELL of 50 COV for $5,356.93 (50*$75.26). I got $1759.50 cash. and that computes to $3,597.43 for BUY of 47.8 shares of MDT. That corresponds to $75.26 MDT close on Jan 27.
I will then do a SELL of 0.8 MDT for the CIL amount, which leaves me with 47 MDT. The basis of the remaining 47 is 47/47.80 of 3,597.43 which is $3537.22. the basis of the 0.8 sold will be $60.21.