Discussion:Baffled by inconsistent K-1s

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Discussion Forum Index --> Advanced Tax Questions --> Baffled by inconsistent K-1s


Discussion Forum Index --> Tax Questions --> Baffled by inconsistent K-1s

Taxmonkey (talk|edits) said:

13 March 2014
I have two clients who each own interests in the PTP Plains All American Pipeline LP. On one clients K-1 the partnership has a gain on the other clients K-1 the partnership has a loss. Both partners owned interests for the entire year. How can this happen??

Ckenefick (talk|edits) said:

13 March 2014
Does it say anything like, "743b adjustments have been run through Line 1?"

Taxmonkey (talk|edits) said:

13 March 2014
Yes, as a matter of fact it does. Buried in the notes:

"The partnership has adjusted the 2013 tax information for the IRC section 754 election based on unit trading prices for the calendar month in which your acquisition was recorded. The adjustment to income for the 743(b) adjustment is included in box 1, ordinary business income"

Thank you, that was really bugging me.

Death&Taxes (talk|edits) said:

13 March 2014
Do these Plains K-1s have bold, black letters telling you not to use them, but to see the papers in back of them?

Ckenefick (talk|edits) said:

13 March 2014
Thank you, that was really bugging me.

Maybe after tax season, you could present a comprehensive 743(b) example for all of us to ponder...

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