Mastering Reporting of Publicly Traded Partnership and MLP K-1s on Partners' Returns

Navigating MLP K-1 Footnotes and Tying Information to the 1040

Recording of a 110-minute CPE webinar with Q&A


Conducted on Wednesday, January 18, 2017

Recorded event now available

or call 1-800-926-7926
Program Materials

This webinar will provide tax advisers and professionals with the tools and practical knowledge needed to accurately reconcile complex Schedule K-1s for publicly traded partnerships (PTPs) and master limited partnerships (MLPs), using sample K-1 information from complex Oil & Gas partnership footnotes and disclosures as an example. The panel will offer guidance on how to translate reportable information onto the partner’s Form 1040, prepare basis schedules, and report at-risk and passive loss limitations.

Description

This webinar will provide tax advisers and professionals with the tools and practical knowledge needed to accurately reconcile complex Schedule K-1s for PTPs and translate reportable information onto the partner’s Form 1040, prepare basis schedules, and report at-risk and passive loss limitations.

For most K-1s received by taxpayers, reporting the pass-through items of income and loss is a fairly straightforward process. However, for many oil and gas PTPs and master limited partnerships (MLPs), the K-1 often requires the tax preparer to compile complex reconciliation schedules before transferring the information reported onto the partner’s income tax return.

A Schedule K-1 from an oil and gas partnership can easily exceed 50 pages or more. These K-1s generally have important tax reporting information in the extensive footnotes following the standard page 1 boxes listing income, deductions, credits and distributions. To allocate and report items on the client’s tax return, tax professionals must use information found in the footnotes.

Schedule K-1s from PTPs and MLPs also present challenges to tax preparers in reporting the client’s basis and at-risk amounts in the investment. Tax professionals must carefully review the K-1 and footnotes to prepare and maintain accurate basis schedules, at-risk amount calculations and capital accounts.

Listen as our experienced panelist provides detailed and practical guidance to help tax professionals correctly reconcile tax information from these complex K-1 schedules and correctly report the information onto the tax return.

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Outline

  1. The law and regulations, including recent developments
  2. Review of Schedule K-1 data, including key footnote information
  3. Required combinations and allocations
  4. Gain/loss reporting for assets sold by the partnership
  5. How to tie reconciliation schedules to Schedule K-1 to tax return
  6. Basis schedule, capital accounts and at-risk amounts
  7. Oil and gas items

Benefits

The panelist will review these and other critical topics:

  • The law and current regulations.
  • Understanding K-1 footnotes to determine items such as passive vs. non-passive income, as well as dispositions
  • Knowing when a K-1 requires the tax preparer to enter info in return areas other than Sch. E pg. 2
  • How to report the information found in reconciliation schedules onto the partner’s income tax return
  • Calculating basis on capital assets sold within a partnership to correctly report gain or loss on Form 8949
  • Preparing and maintaining a basis schedule for the partnership investment
  • Recent developments, including the proposed regulations regarding the definition of “qualifying income” for PTPs in the oil and gas industry, as well as the Bipartisan Budget Act of 2015

Faculty

James E. Marker, II, CPA
James E. Marker, II, CPA

Tax Manager
Sisterson & Co.

Mr. Marker's practice focuses on dealing with businesses and individual investors in the upstream and midstream...  |  Read More

Joseph P. Nicola, Jr.
Joseph P. Nicola, Jr.

Tax Partner
Sisterson & Co.

Mr. Nicola has experience in many areas of taxation, including the taxation of and planning for individuals,...  |  Read More

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