MLP K-1 vs tax software

Last year, I bought 'units' in a couple of MLP 'Publicly Traded Partnerships'. I've gotten K-1s from them, showing basically passive losses. Via

formatting link
I found filled-in tax forms specific to my ownership in these MLPs. This information corresponds to my limited understanding of how the taxes should be done. So far, so good.

My problem is, I'm using TaxCut (Deluxe), which doesn't support PTPs. (As in, where you check "PTP" on TaxCut's K-1 form, it says "you'll need to perform special calculations that we don't cover ...".) If you check the PTP box and fill in the rest of the form, it posts the numbers to what appear to be quite wrong places. In particular, I find the passive loss on Sch E Part II (line 28), where it is applied against income from other sources.

I can override these posted numbers in TaxCut. But, at least in the past, TaxCut would not let you e-file with overrides. That would leave the option of pre-bending the K-1 numbers, so as to get the right (?) numbers on the higher forms. That seems like a bad idea.

So, my question: is there a 'retail' tax program that does this right? I've gotten the impression that TurboTax might do so. But, I thought it would be easier to ask, before getting it and finding out that it didn't.

Or anything else?

Thank you, George

Reply to
George
Loading thread data ...

As with most of the professionals on this site, I haven't a clue how various retail tax programs do their stuff.

Reply to
Tom Healy CPA

A loss in a K-1 is allowed if you actively participated in the activity. So make sure you tell the program that you did not participate actively in the PTP, if that is the case. The loss should not be allowed against other income on page 1 of the 1040.

Reply to
removeps-groups

But the 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.

Reply to
Tom Healy CPA

BeanSmart website is not affiliated with any of the manufacturers or service providers discussed here. All logos and trade names are the property of their respective owners.