Discussion:Client death - partner in Publicly Traded Partnership

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Discussion Forum Index --> Basic Tax Questions --> Client death - partner in Publicly Traded Partnership

Discussion Forum Index --> Tax Questions --> Client death - partner in Publicly Traded Partnership

Natalie (talk|edits) said:

April 14, 2014
One of my clients died last November. The K-1 from his PTP investment is not marked "final." The trustee spoke to the investment adviser and was told the final K-1 would come next year after it is sold.

This is the first time I've worked with a PTP. I understand PTPs are treated a little differently than other partnerships, and fortunately the amounts are pretty small (~$500 ordinary loss and investment income of about $150). It seems the best way to handle this would be to simply report the entire K-1 on my client's return for this year. Since the K-1 is not final, is this going to create a problem for 2014?

Natalie (talk|edits) said:

April 14, 2014
There are actually two K-1s with my client's name on them. The second one is listed as a joint tenancy ownership with his mother. (Another issue that I've not had to deal with before.) The K-1 and a 1099 have the mother's social security number on them. The trustee, who is my client's son, does not have a good relationship with the mother. Is it okay to not include anything on my client's return for these investments and assume the mother will report the full amount? I know I sound like a total newby. Any assistance will be appreciated.

Kevinh5 (talk|edits) said:

14 April 2014
Natalie, back up to what you know about joint-tenancy with a non-spouse.

The person who provided the funds gets the income.

Natalie (talk|edits) said:

April 15, 2014
Thanks Kevin. I got that. I have one more question. My client received a 1099 for his other investments. The trustee informed the brokerage firm last year that my client died in November. I was therefore expecting to see two or three 1099s -- one under my client's name and the other under the beneficiaries' names. That's not the case, however, and there are quite a lot of sales after the date of death. I understand one way to handle this is to back out the sales after the date of death. If we do this, should we still ask for a corrected 1099? (Starting to panic with extension required tomorrow.)

Ckenefick (talk|edits) said:

15 April 2014

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