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Discussion:PTP - K-1 not received yet

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Discussion Forum Index --> Tax Questions --> PTP - K-1 not received yet


DublinTax (talk|edits) said:

11 April 2010
My client invested in a PTP and his k-1 will come Mid summer.

Questions: Can he file his taxes by April 15th without this information ( I think he needs to wait for K-1) preliminary amounts are Ordinary income: $ 28 Long-term capital gain/(loss): $-1

give the smaller amounts involved is there an alternative for him to get his refund - everything else is ready.


"In addition, this information is not all inclusive and does not contain the level of detail that you will need to properly complete your 2009 income tax return(s). The information that will be reported on your actual Schedule K-1 that you receive in mid-summer will be different, possibly significantly different."

Your Share of 2009 Preliminary Taxable Income: Ordinary income: $ 28 Long-term capital gain/(loss): $-1

Harry Boscoe (talk|edits) said:

11 April 2010
Does your client happen to have a passive loss carryforward from '08 for this PTP? If so...

DublinTax (talk|edits) said:

11 April 2010
I don't think so

Harry Boscoe (talk|edits) said:

11 April 2010
Dang.

Kevinh5 (talk|edits) said:

11 April 2010
either he wants his refund now and amends later

or he extends now and gets refund later at a lower cost

DublinTax (talk|edits) said:

11 April 2010
Hi Kevin,

Are you saying that he can file without including the K-1 data and amend later once he gets K-1. Second option is lower cost because of tax preparation fee or anything else involved.

Harry Boscoe (talk|edits) said:

11 April 2010
"Ordinary income $28; Long-term capital gain/(loss) $-1."

If he guesses right (or just a little bit too high), he gets his refund now, and doesn't have to amend, later.

How long ago was it that we heard "Any amount of tax less than your tax preparer's hourly rate is *immaterial*"?

Heritage120 (talk|edits) said:

11 April 2010
If those amounts are pretty reflective of what happens normally on that K-1 then if you file now & use those amounts it should be ok. I would look at the history on that K-1 to see if it is normally a low amount like that or varies alot from year to year. I too would think that any differences would be fairly immaterial if historical figures are usually fairly low like that. The amounts are so low that it would probably cost the taxpayer more money to pay you to do an amendment. I'd weigh the cost/benefit of doing it now. If you think there is a high likelihood that the amounts will be so far off of your estimated K-1 that you will definitely need to amend then I would consider extending and waiting for final figures. The taxpayer may decide they want their refund now and has no problem with amending and paying more for tax preparation if needed. I'd give the client the option after explaining both ways. Ultimately you have 3 options: 1 - File now with estimated K-1, amts considered immaterial between estimated and actual K-1. No amendment later. 2 - Extend & wait for correct information. Then prepare based on accurate docs. (My preference) 3 - File now, amend later. Option 1 will cost the least in tax prep fees for the client. Option 2 costs the client for the prep of the extension. Option 3 will cost the client the most in tax prep fees.

Death&Taxes (talk|edits) said:

12 April 2010
Did he own it at the end of the year? If not, there is a gain or loss computation, and depending on how much was invested, it can be substantial...in fact the sale may be in his Sch D and be wrong. If he owns it still, you pays your money, you takes your choice.

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