Energy Transfer K-1

Forum|Forum|1 year ago
April 3, 2025
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Hello,

I am doing 5 K-1 forms for Energy Transfer because both ET and Sunoco have both bus. and real estate income. Do I need to enter every one of these entries in the respective K-1 forms for ET/USAC/Sunoco except the real estate income? And then just enter the real estate income on a separate K-1 for ET and Sunoco (that being the only thing I enter on those K-1s)? Also, do I give Energy Transfer's EIN on all 5 K-1 forms? That is what is on the Part 1 of the K-1, but later I see each company listed as FEIN (see below).

Best answer by Mike9241

read the letter in the tax package. there's usually a sentence that says it's unclear how to report tiered partnerships. Therefore, it's up to you on how to report. Turbotax does not allow lines 1 and 2 to be used on a single K-1. If you elect company by company reporting you'll need a K-1 for each that has income/loss on line 1 and a K-1 for each entity that has income/loss on line 2. You then have to deal with the separate QBI amounts for each K-1. Combined report based on ET's K-1 means only 2 K-1s lines 1 and 2 in total.

Alert: Upon sale, the reporting provided by ET ( true for all prior years) does not break down by entity or type of income.

Your K-1 probably reflects an amount on line 13K that has not been deducted from line 1 or 2. This subjects you to filing form 8990 that Turbotax does not do.

Mike9241Answer

Alert: Upon sale, the reporting provided by ET ( true for all prior years) does not break down by entity or type of income.

Your K-1 probably reflects an amount on line 13K that has not been deducted from line 1 or 2. This subjects you to filing form 8990 that Turbotax does not do.

MLPK1Author

Thanks, I am now thinking of going with just two K-1 forms. One with everything on it except for box 2 and one with only box 2 information. I see the issue with disposition and how to allocate, which would be impossible to do accurately.

Thanks for your help.