My basic question is, if an MLP distribution is taxable, will this be indicated on the K-1?
In more detail: I have shares/'units' from an MLP. The 'ending capital account' unexpectedly (to me) went slightly negative on the
2014 K-1. My understanding is that, once my basis reaches $0, further distributions are subject to tax. And, my not-so-solid understanding is that 'nonrecourse liabilities' (substantial, in this case) increase my basis.
So, if I'm right about the effect of nonrecourse liabilites, I would have nothing to worry about here. But, it would be reassuring to know that, if some of the distro was taxable, the K-1 would say so.
Thank you for any light you might shed. G