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Post by Schroeder on Mar 23, 2022 15:42:11 GMT
Anyone sell an MLP and used Turbo Tax to file? If so, did you have to change the numbers on the K1 sales schedule to make the results accurate? People on the TT forum advise the program doesn't give correct results and give different ways to correct it. Any opinions on this are welcome.
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Post by bugman on Mar 23, 2022 16:44:21 GMT
Yeah, just completed mine this past week for ET. I sold 100 shares to test how I would be impacted if I sold my remaining 15k shares. Not a pretty picture and will likely never sell them.
With regard to Turbotax, you have to play around with it a bit to get the numbers right. Don't use your brokers cost basis numbers in the stock sale section, but input those that you get from the sales sheet of your k-1. Within the MLP K-1 section of turbotax, input 0's for the first 3 rows on Sale Price, Sales expense, and Cost Basis, but do input the Ordinary Gain here and in the AMT sections, appropriately.
This should do it, but check the forms for a couple of forms to make sure the Ordinary Gain and profit/loss make sense as the Gain and Ordinary Gain both needed to be input. Gain will appear in the Stock Sale area of TT and the K-1 for Ordinary Gain.
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Post by anitya on Mar 23, 2022 21:57:46 GMT
"[W]ill likely never sell them"
What possible exit strategies are you considering? Otherwise, what are its prospects as a forever asset? Just looking for your thought process.
I have MMP - I sold some in 2020 within days of buying. Did not sell any in 2021 and thought I will just contribute to charity. The charitable deduction will be less than FV.
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Deleted
Deleted Member
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Post by Deleted on Mar 23, 2022 22:36:34 GMT
Donating them to charity is a good idea!
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Post by bugman on Mar 23, 2022 23:35:39 GMT
"[W]ill likely never sell them" What possible exit strategies are you considering? Otherwise, what are its prospects as a forever asset? Just looking for your thought process. I have MMP - I sold some in 2020 within days of buying. Did not sell any in 2021 and thought I will just contribute to charity. The charitable deduction will be less than FV. Depends on your situation, but I've owned ET for many years and I have enjoyed the monthly return of capital (no taxes incurred). If I sell I have to pay taxes on likely 8 years of untaxed (reduction in cost basis) gains even though the stock has crashed over the years. I'll just keep milking the monthly dividends and pass on the shares to my heirs. At one point, if that event proceeds no taxes would be owed, but who knows if that tax loophole was closed. You would have to consult a tax accountant. In my case, I'll just take the income until I surpass my purchase cost, and then I'll have to pay taxes on the new distributions. No biggee.
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Post by Schroeder on Mar 24, 2022 14:04:09 GMT
Thanks for the reply. I put the numbers in a few different ways. My LT and Ordinary gain are now what they should be. If the IRS doesn't agree I'm sure they will let me know.
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Post by bugman on Mar 24, 2022 14:39:06 GMT
Thanks for the reply. I put the numbers in a few different ways. My LT and Ordinary gain are now what they should be. If the IRS doesn't agree I'm sure they will let me know. Mine was accepted, but that doesn't mean much...
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Post by Schroeder on May 15, 2023 14:06:35 GMT
bugman: You still out there?
Your MLP sale advice was correct. It's been well over a year and the IRS hasn't corrected my return. Thanks. Now I just heard something is going on with OKE and MMP. Do you own either one of them? I own both. I hope it will be a deal like when ETP was merged with ET and was non taxable. Barron's mentioned stock and cash involved so that sounds taxable. Anyone have comments?
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Post by anitya on May 15, 2023 18:02:00 GMT
I own MMP. It is taxable. The 20% premium is not good enough for many as their tax bill will eat up the premium. I am not thrilled with the part cash, part stock consideration which means the deal premium could disappear by the time the transaction closes. OENK is a corporation and so if you continue to hold OENK stock, it is unlikely you are going to receive tax deferred distributions, which is currently possible with owning MMP. I am likely going to contribute MMP to a charity before the deal closes and avoid the tax. www.sec.gov/Archives/edgar/data/1126975/000119312523144060/d468098dex991.htm
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Post by bugman on May 15, 2023 19:24:04 GMT
bugman: You still out there?
Your MLP sale advice was correct. It's been well over a year and the IRS hasn't corrected my return. Thanks. Now I just heard something is going on with OKE and MMP. Do you own either one of them? I own both. I hope it will be a deal like when ETP was merged with ET and was non taxable. Barron's mentioned stock and cash involved so that sounds taxable. Anyone have comments?
Glad to hear it worked out well, but can't help you on your latest question as I own neither of them.
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Post by mnfish on May 16, 2023 12:17:09 GMT
I own 400sh of MMP with a cost basis of $67.83 held since 2015. Right now I'm tempted to put in a sell order in @ $69 and see what happens. OKE is down to $58 already and is down 18% since it last touch $70 in Jan and has spent a lot of time below $60 since 2017 when they rolled up OKS.
My thesis 400sh sold @ $67.83 = $27,132 or $25 per share cash = $10,000 400 x .667 = 266sh OKE @ $58 = $15,428 = Total $25,428 It would have to get to $64.40 to equal selling at my cost basis.
Either way it's time to start gathering up 8 years of K-1s for tax time.
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Post by mnfish on Jun 9, 2023 12:43:52 GMT
I own 400sh of MMP with a cost basis of $67.83 held since 2015. Right now I'm tempted to put in a sell order in @ $69 and see what happens. OKE is down to $58 already and is down 18% since it last touch $70 in Jan and has spent a lot of time below $60 since 2017 when they rolled up OKS. My thesis 400sh sold @ $67.83 = $27,132 or $25 per share cash = $10,000 400 x .667 = 266sh OKE @ $58 = $15,428 = Total $25,428 It would have to get to $64.40 to equal selling at my cost basis. Either way it's time to start gathering up 8 years of K-1s for tax time. Well, I don't know where I got the $69 figure in the above post but here is my final (before 2023 taxes) numbers on MMP. 1/13/2015 - bought 200sh @ $75.60 $15,132.00 5/7/2019 - bought 200sh @ $60.00 $12,000.00 6/5/2023 - sold 400sh @ $61.50 $24,600.00 ( loss -$2,532) Collected $9,704 in distys since 2015 (net w/above loss = +$7,172) My 2023 ending capital acct should be $12,480 The rest of the story is up to TurboTax
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