Those who who hold this in a taxable account will learn about line 13J in Turbotax for the IDC. There appears to be no 20V UBTI line, so good for IRAs.
I think investors in LINE would be interested in the K-1.
For a small investor, putting SEP into an IRA is usually not bad. The bogie is to keep UBTI low. I do that, and I monitor UBTI. It is not simple to describe what is safe, but if the total of all of the POSITIVE values in your IRAs is less than $1000, you are safe from getting taxed and paying your broker to file that tax. There can be other factors, but if you can meet that criterion, you should be safe.
SEP, like most energy MLPs (PTPs) have negative UBTI, at least in the early years that you hold them. I watch, and if any start to generate non-trivial positive UBTI, I look to sell the whole thing. It is not 100% safe, but I have not been bitten yet.
If you bought SEP in a taxable account, you have a significant learning curve with Turbotax plus a significant annual chore, or you will pay a tax person to do it for you. I don't know what a tax person would charge to do just SEP.
Line 16E and 16J, which are small "General Category" items. When I link the K-1 to the existing form 1116 for passive paid foreign tax, I get an error. For troubleshooting, changing those tags to D and I makes the error disappear. So it looks like the right way to do it is to change them back to E and J, and then create a new copy of form 1116 in Turbotax for General Paid foreign tax.
I agree. It's normal to have a dip at that point. It's usually a temporary thing. The secondary is scheduled to get priced Thursday evening, and the shares to be allocated overnight. So there may be a recovery Friday.
Line 3 has a bit of rental income. If you import the TXF file to TurboTax, it will show an error, because it does not like rental income to be combined on a general business K-1. There is a manual workaround to get the line 3 number on to the right place on Schedule E. It's been discussed before, so let's hope somebody posts a handy reference to the method.
Supposedly the "rights are not transferable. Each right give the right to buy 0.48 units at $2.50. Rights said to expire after Feb 6.
Your broker may or may not charge you to exercise, and if the broker charges, it will probably be more than the charge for a commission.
The effect is to dilute the value of existing shares, and to assess holders to send more money. My experience with companies that do this is not good. However since the majority of the units are held by two people, maybe that is different? It's not good for the small holders generally IMHO. This has not been a good investment.
I got my CIL credited on Jan 6. No action required. I have never had to inquire or remind a broker of CIL. I hope this was a singular mistake on their part.
On stock held in street name, I figure that a broker will have multiple users due CIL, and it is up to the broker to sell some whole shares and distribute money for the CIL. It may be that FNF is involved in each CIL, but I doubt it.
Your bit about a class action against FNF was weird. Have you ever filled out the paperwork for a class action? CIL values are always less than a share.
On the FNF site in the Investor FAQs there is now a link to a PDF
"Tax basis Information for former LPS stockholders". It says, if I read correctly, that the new FNF shares will have a basis equal to $32.25 -- the closing price on Jan 2 -- or a similar value if a slightly different valuation is selected. The basis of the LPS shares will not affect the FNF shares received. Instead that basis will be the basis of a SELL of the LPS shares. The proceeds of the LPS shares will be the cash received ($28.102 per each LPS share) plus ($32.25 *0.28742)for each LPS share.
See how you interpret it.
I am not so sure about the accounting, but it seems that the broker is using $32.32, the close on the third, as the value of the FNF shares received.
Thanks. While I cannot find it now, some such document I read had made me think this is total purchase accounting, as opposed to the common kind which is at least partially a non-taxable event. In those you usually have a document that the takeover company has asked for an IRS private letter to that effect.
I will be staying tuned. If I remember correctly, FNF in the past has not been a leader in explaining the tax effects simply to the small investor. On the other hand, they have been pretty good at generating value.
The use of the average of high and low prices for Jan 2 gives $32.435 per share valuation for FNF. Since that is above both the open=32.33 and close=32.25 for the day, a different valuation, such as the open would make sense to me. We will just have to see what the brokers do.