MLP K-1 Tax Reporting

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Joined: Sun Oct 14, 2018 1:41 pm

MLP K-1 Tax Reporting

Post by rwbil » Sun Oct 14, 2018 1:48 pm

Does anyone know how to properly report MLP K-1 Information on Tax Return. I use HR Block Tax SW and it is not very useful and I have searched and found very little information.

First here is what I do know:

1 A loss in a K-1 is allowed if you actively participated in the

2 loss also can't be used against any income from the other MLP
or other passive activities. Each MLP stands on its own regarding
losses until the MLP is sold.

So I cannot take the loses for an specific MLP until I sell that MLP.

Q1 So for when I sell do I keep a record of K-1 Box 1 losses for each year and then use that to offset the basis when I sell?

Q2 Do I need to keep track of anything else until I sell

Now comes the really hard part. I think boxes 1 - 10 are fairly simple. But I have no idea what in the world to do with box 13, 19 and 20. The tax SW does not seem to know what to do with them either. For example Box 13 has STMT and then breaks that down into 13 T1, T2, T3 T4 and a T5

Do you just ignore all these boxes and do nothing or are you suppose to do something with the data in those boxes.

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