Treatement of MLP k-1 data by Pennsylvania

Apr 15, 2014 4 Replies
J

I'm getting k-1s for 3 oil and gas MLPs and the business losses gets converted to passive losses which (somehow) comes into play when you sell. Turbo Tax gives you even less help with state k-1s then it does for Federal, but it is clear that there may/should be adjustments to various amount from the Federal k-1 and the program doesn't give you any clues as to how to determine them.



The main item I'm focusing on is the business income/loss, since it is the only figure of any size. I'll be taking my returns to a CPA this year for a complete review, once the dust settles from tax season and I find someone who really know MLP taxation, but I would appreciate anything you can tell me now about how Pa treats this area.



jo


Vote
Twitter Facebook LinkedIn
N

You may or may not find some help here:

formatting link
here:
formatting link
have now given up on TurboTax for MLP's and had a CPA do my taxes this year for the first time ever. After doing my own for 50 years, I finally tossed in the towel. What a great feeling that is now somebody else's problem.

Vote
Twitter Facebook LinkedIn
J

That's the point I have reached. I'm not at all confident that what I've been doing for the last 3 years is completely accurate on the Federal level and I have even bigger concerns about the state and local. I just need to find someone who really knows this area. Thanks for the links; they confirm that K-1s drive everyone crazy and that any solutions people come up with are generally accidental or adhoc.

Vote
Twitter Facebook LinkedIn
D

Unless you have Sch. E gains (partnerships, rents, royalties, etc.), the losses are not deductible on your Pennsylvania return. The state does not allow losses in one category of income to offset gains in other categories (e.g, wages, interest, etc.).

Most people with partnership losses can simply attach a copy of the federal Sch. E to the PA-40, enter the amount of the losses on line 6, and fill in the oval on that line. Interest income, if any, goes on line

2 (and Sch. A if more than $2,500).
Vote
Twitter Facebook LinkedIn
J

Thanks. Looks like I'm going to owe the state a bundle. I had a feeling PA did not allow that loss.

jo

Vote
Twitter Facebook LinkedIn

Join the Discussion

Have something to add? Share your thoughts — no account required.

Didn't find your answer?

Ask the community — no account required