How to enter a MLP Merger

Forum|Forum|2 years ago
March 29, 2024
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MLP A merged into MLP B. I received a final K-1 for MLP A. I received a K-1 for MLP B

How do I handle the MLP A Entries?

The MLP ends in 2023

What do I enter to describe the partnership disposal? No entry or not via sale?

How are the passive losses transferred to MLP B?

Not A Product Question

nexchap

@RicM It depends. If the merger was a taxable event, you'd think about it (and enter it) as though you did the transaction in two steps: 1) a complete disposition of MLP A where the sale price was whatever the value of MLP B was on that day and 2) a purchase of shares of MLP B.

If it wasn't taxable, then for MLP A you'd select 'The Partnership Ended' and 'Disposition was not via a sale'. This will mean that all the suspended losses from MLP A will remain suspended. You'd enter the MLP B K-1 as normal. TT doesn't do anything to merge the suspended losses from A & B, but you can handle that next year.

NEXT YEAR, when you're filling out the K-1 for MLP B, you'll get to the screen that asks about suspended losses from prior years. TT will grab the losses from MLP B, but you can change those numbers to be the sum of MLP A & B. Then just delete the MLP A K-1 that TT created.

**Say "Thanks" by clicking the thumb icon in a post**Note also, I'm not a Tax Preparer/CPA. Just a volunteer, seasoned, TurboTax user. Use any advice accordingly!

RicMAuthor

Thank you! It was a non-taxable event. Thats how I had entered it in TurboTax but was unsure if I wanted to move the suspended losses this year or next. Thanks again.