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Post by bb2 on Oct 16, 2022 17:23:28 GMT
Am getting tempted by a few names like AB, (added to watch lists) but then there's the dreaded K1 to deal with. I've finally eliminated all my K1 pipelines just because at tax time I have such difficulty dealing with them; I end up fudging my entries in Turbo Tax as I don't understand what I'm doing.
Any suggestions on how to deal with K1's? Do you, like me, avoid them? Maybe I should get a tax person and let her deal with it? I'm a hopeless DIY'er - even shingled my own roof but I can see giving up the tax chore and I'll never roof a house again.
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Post by yogibearbull on Oct 16, 2022 17:43:24 GMT
K-1s are pain. I finally got rid of my positions that generated K-1s a couple of years ago and I intend to remain K-1 free from now on.
Besides the extra paperwork, delays were another problem for me - K-1s only come in mid/late-March and that precludes early tax filings. I still file them in early-April but that is by MY choice.
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Post by ECE Prof on Oct 16, 2022 18:37:37 GMT
K-1s are pain. I finally got rid of my positions that generated K-1s a couple of years ago and I intend to remain K-1 free from now on. Besides the extra paperwork, delays were another problem for me - K-1s only come in mid/late-March and that precludes early tax filings. I still file them in early-April but that is by MY choice. +1. Yogi stated all the correct points.
I had ET for one year. Fortunately, early April before the last day for filing, I just googled and found the K1 was available. Then, I had to create an account with ET using my SS#, logged in, downloaded the details of my shares in the PDF format. Then, I had to fill 2 or 3 pages. I had it then. So, I avoid K1.
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Post by Capital on Oct 16, 2022 19:22:49 GMT
Yes I avoid K-1s. I want only 1099s. IMHO there are plenty of 1099 opportunities available to not have a need to deal with K-1 pains.
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sgra
Lieutenant
Posts: 64
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Post by sgra on Oct 17, 2022 1:11:10 GMT
I avoid K-1s. At one point, I had 5 or 6 PTPs w/K-1s. I got rid of all but one due primarily to price declines. I now hold only MMP due to tax handcuffs (I bought it real cheap) and it remains a high quality business. I told my wife to sell if I drop dead because stepped up basis should mitigate some of the tax. Another (unmentioned) risk is partnership conversion to C-corp and the ensuing tax hit to investors.
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Post by bobfl on Oct 28, 2022 15:32:23 GMT
I had a K1. At tax time, per TurboTax, I had to fill out a long form. When I finished TurboTax said, "Oh, incidentally, you did not have to complete that form." Grrr.
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Post by retiredat48 on Oct 28, 2022 15:36:47 GMT
While there is one potential glitch, owing assets and having K-1s in in IRA is not a problem---correct?? You ignore the K-1s.
R48
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Post by Capital on Oct 28, 2022 21:08:35 GMT
While there is one potential glitch, owing assets and having K-1s in in IRA is not a problem---correct?? You ignore the K-1s. R48 For assets held in an IRA you are not the taxpayer. However, in that case you need to send them to the IRA Fiduciary. It is possible the IRA might need to pay taxes in the event that the UBIT of all K-1s plus gains on sale exceeds $1000. LINK |
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Post by retiredat48 on Oct 28, 2022 21:18:31 GMT
While there is one potential glitch, owing assets and having K-1s in in IRA is not a problem---correct?? You ignore the K-1s. R48 For assets held in an IRA you are not the taxpayer. However, in that case you need to send them to the IRA Fiduciary. It is possible the IRA might need to pay taxes in the event that the UBIT of all K-1s plus gains on sale exceeds $1000. LINKThanks...yes, that is the "glitch" I was referring to. Fact is, it is rare, or takes a huge investment, to get UBIT above $1000 in any year. R48 |
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