Looking for help with tax question.

[aja8888]

I have a K-1 from my MLP (Energy Transfer) which indicates three Publicly Traded Partnerships (PTP) found in a column (ET, USAC, SUN) existing under a schedule that is indicating I should report the financial activities of all three. My tax program is of no help in explaining how to report the activities (numbers - $$). My thoughts are to just blend the numbers together and report them in the ET K-1. Or maybe construct separate K-1's for the other two?

Any help here from the talented and gracious tax professionals would be of great help in explaining what to do with the reporting of the two other MLPs (UASC, SUN). Thanks!

 

[AudiDudi]

I have a K-1 from my MLP (Energy Transfer) which indicates three Publicly Traded Partnerships (PTP) found in a column (ET, USAC, SUN) existing under a schedule that is indicating I should report the financial activities of all three. My tax program is of no help in explaining how to report the activities (numbers - $$). My thoughts are to just blend the numbers together and report them in the ET K-1. Or maybe construct separate K-1's for the other two?

Any help here from the talented and gracious tax professionals would be of great help in explaining what to do with the reporting of the two other MLPs (UASC, SUN). Thanks!
View attachment 62438

Did you check their web page for possible instructions? BEfore I got rid of all my K-1 issuing securities, one of them had instructions online. Turbo Tax also seemed to do a decent job. But it has been many years.

 

[aja8888]

Did you check their web page for possible instructions? BEfore I got rid of all my K-1 issuing securities, one of them had instructions online. Turbo Tax also seemed to do a decent job. But it has been many years.

Yes, I'm using H&R and all they say is call for help starting at $99! I have had ET for a long time with a huge gain in it and will leave it to my daughter some day.

 

[pb4uski]

It looks to me like you have 3 separate K-1s on one page and that each column would be entered on its own K-1 and that the rows are the boxes on the K-1.

What have you done with this in past years or is this new to you in 2025?

 

[aja8888]

It looks to me like you have 3 separate K-1s on one page and that each column would be entered on its own K-1 and that the rows are the boxes on the K-1.

That's what I think too, but I want to be sure I just can't blend the numbers into the very large ET partner's K-1. If that was the case (separate K-1's), I would have expected three documents.

 

[Jerry1]

It looks to me like you have 3 separate K-1s on one page and that each column would be entered on its own K-1 and that the rows are the boxes on the K-1.

I agree. It's just three K-1's. You have three different EIN's on the top of the form. Enter them separately.

 

[38Chevy454]

It doesn't help your question, but this is example of why I hold ET in tax free account. MLPs seem to create a lot of tax filing headaches.

Back to the question, I think since all three have separate EINs and corresponding numbers in the table, you need to treat each as its own K-1. Even if you summed them up and the total is the same net result as three individual, it seems this could create a potential audit flag doing as one rolled up K-1.

 

[Original Wally]

I agree. It's just three K-1's. You have three different EIN's on the top of the form. Enter them separately.

I agree. With separate EINs they should be each reported separately.

 

[Original Wally]

It doesn't help your question, but this is example of why I hold ET in tax free account. MLPs seem to create a lot of tax filing headaches.

My MLP K-1 didn't seem to have any extra hair on it. Pretty straight forward IMHO

 

[aja8888]

My MLP K-1 didn't seem to have any extra hair on it. Pretty straight forward IMHO

Obviously yours is different. This is the first time I have encountered this setup. I've owned MLPs for decades and never saw this.

 

[Sunset]

It doesn't help your question, but this is example of why I hold ET in tax free account. MLPs seem to create a lot of tax filing headaches.

Back to the question, I think since all three have separate EINs and corresponding numbers in the table, you need to treat each as its own K-1. Even if you summed them up and the total is the same net result as three individual, it seems this could create a potential audit flag doing as one rolled up K-1.

I remember when I got my first K-1 weeks AFTER all other forms had shown up, and I had filed my taxes

Then I realized I was "lucky" enough to have purchased it in an IRA. So I do nothing with it each year.

 

[aja8888]

I remember when I got my first K-1 weeks AFTER all other forms had shown up, and I had filed my taxes

Then I realized I was "lucky" enough to have purchased it in an IRA. So I do nothing with it each year.

I had EPD in my IRA for a long time and Schwab filed the annual 990T (I think that was the form).

 

[aja8888]

What have you done with this in past years or is this new to you in 2025?

First time I have seen this kind of schedule.

Bumping this up before it disappears. Hoping one of our tax experts here can chime in with a concrete solution.

 

[pb4uski]

I think that the consensus was that each column was a separate K-1

 

[cathy63]

Yes, it's three separate K-1s. Your tax software should let you enter them separately.

You can add them together if you want. Your tax software is going to total them up behind the scenes anyway, but why do the extra math yourself? The odds of the computer making an addition error are much lower than the odds of a human doing it.

 

[aja8888]

Yes, it's three separate K-1s. Your tax software should let you enter them separately.

You can add them together if you want. Your tax software is going to total them up behind the scenes anyway, but why do the extra math yourself? The odds of the computer making an addition error are much lower than the odds of a human doing it.

Thank you Cathy!

 

[pb4uski]

I'm not sure if y'all noticed, but me, Jerry1, 38Chevy454 and Original Wally all said that we thought it was 3 K-1s... but that wasn't good enough so aja888 bumped it " .. Hoping one of our tax experts here can chime in..."

cathy63 comes along and says the same thing we did and gets a "Thank you Cathy! ".

I guess that we now know where we all rank with aja8888!

 

[cathy63]

I'm not sure if y'all noticed, but me, Jerry1, 38Chevy454 and Original Wally all said that we thought it was 3 K-1s... but that wasn't good enough so aja888 bumped it " .. Hoping one of our tax experts here can chime in..."

cathy63 comes along and says the same thing we did and gets a "Thank you Cathy! ".

I guess that we now know where we all rank with aja8888!

Yes, I did notice that you all had already said that! I obviously agree with all of you (except for someone's comment about it possibly being an audit flag to add them together, which it's not, it's just extra work).

 

[Jerry1]

Frankly, I’d rely on Cathy also.

 

[gauss]

Obviously yours is different. This is the first time I have encountered this setup. I've owned MLPs for decades and never saw this.

In the past, did your 1065 Sch K-1 look more like this?
https://www.irs.gov/pub/irs-pdf/f1065sk1.pdf ?

If yes maybe you could fill out three 1065 K-1's with the above pdf and your table of info provided and then things would look more familiar and flow more smoothly into your tax prep software.

PSA - You should always have an idea of what the answer should be before using tax prep software. In general they are buggy and seem to be getting worse. I had a 1041 K-1 this year and the tax software underestimated my NII by over $75,000. I was able to make three other adjustments to get the ftax form correct but the point is that an average user would have just typed the form data in and expected the software to report the form correctly -- not omit $75,000 of income. (/soapbox off)

-gauss

 

[aja8888]

I'm not sure if y'all noticed, but me, Jerry1, 38Chevy454 and Original Wally all said that we thought it was 3 K-1s... but that wasn't good enough so aja888 bumped it " .. Hoping one of our tax experts here can chime in..."

cathy63 comes along and says the same thing we did and gets a "Thank you Cathy! ".

I guess that we now know where we all rank with aja8888!

PB, sure hope you are over the bad day you were having when you posted this. I love you all!