Publicly Traded Partnerships


D

d.l.schumacher

As a result of broker recommendations, I have participated
in a number of publicly traded energy partnerships over the
past year. I normally use TaxCut to do my taxes but it
doesn't handle publicly traded partnerships. Are there any
tax packages out there that handle publicly traded
partnership K-1s and associated forms? A few of the of the
K-1s I have received are complete zeroes so I am treating
them as straight buys and sells, but I have two that have
cash distributions and apparently require filing of multiple
forms.

Regards, Dan
 
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T

Thomas Healy

d.l.schumacher said:
As a result of broker recommendations, I have participated
in a number of publicly traded energy partnerships over the
past year. I normally use TaxCut to do my taxes but it
doesn't handle publicly traded partnerships. Are there any
tax packages out there that handle publicly traded
partnership K-1s and associated forms? A few of the of the
K-1s I have received are complete zeroes so I am treating
them as straight buys and sells, but I have two that have
cash distributions and apparently require filing of multiple
forms.
You just have to slog through the K-1's and supplemental
statements to put the information on the correct forms (I
suspect that TT can do it if you put info in the right
places). It helps to create a spreadsheet with a line for
each PLP you sold to calculate the ordinary income portion
(which goes on Form 4797), the basis for capital gain, basis
for AMT capital gain, etc. You also need to attach 751
and/or 754 statements to your return, depending on the PLP.
And you might be liable for Canadian tax on at least one of
the popular ones.

I tell my clients who have done this that they should buy
enough of a PLP so that the accounting costs or properly
reporting them doesn't eat up all the income.
 

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