How to Record Sale of Publicly Traded Partnership (PTP) Units on Form 1040
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- čas přidán 11. 09. 2024
- Are you invested in Publicly Traded Partnership (PTP) investments? Be careful of the tax consequences...
PTPs are, by default, taxed as corporations unless they meet one of the gross income exceptions under the IRC. If the PTP qualifies, it retains its tax classification as a partnership rather than a corporation.
PTP investments issue the owner a Schedule K-1 each year, as the PTP itself is not subject to tax, but the owners are subject to taxes on their investment.
If a PTP investment is sold during the tax year, there are significant adjustments to the amounts of capital gain/loss and ordinary gain/loss on the tax returns. Failure to accurately make these adjustments will result in significant variances in a taxpayer's reported taxable income.
Form 8582 for PTP: • IRS Form 8582 (Passive...
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DISCLAIMER: The information provided in this video may contain information about tax, financial, and legal topics. Such materials are for informational purposes only and may not reflect the most current developments. These informational materials are not intended and should not be taken as tax, financial, or legal advice. You should contact an advisor to discuss your specific facts and circumstances. Self-help services may not be permitted in all states or jurisdictions. The use of these materials does not create an attorney-client or confidential relationship. This video does not include information about every topic or issue related to these informational materials.
#PubliclyTradedPartnership #PTP #ScheduleK1
Excellent video. Very clear and easy to follow.
Glad it was helpful!
Thank you . This is definitely the best CZcams posting on explaining sale of PTP units! I think they are so complex to file in a return that only tax lawyers should ever consider buying them. I would like to see a video about filing multiple state tax returns for these PTPs- Do they really except investors file in dozens of states where the company does business? 😀 👍
I know all this stuff and I still watched the entire 40 minutes. Thank you for posting this. Its very informative.
Super helpful, thank you so so much for your walkthrough! Really appreciate someone so knowledgeable like you to share accurate information! Looking forward to more videos of you!
Thank you very much for the contents. It was the best one I can find regarding how to report schedule K-1 to 1040. Excellent job!!
I've been trying to figure this stuff out for months. I even paid $200 for a course that was helpful, but it was wordy and not as comprehensive or understandable as this video. You explain this complex process very well. Thank you!
It seems difficult to determine if the investment in the PTP was actually profitable for the investor. Mostly taxed as ordinary income and then also sees a capital gain even when selling shares at a loss. The example doesn't mention the total distributions received over the years, but doesn't strike me as a good investment.
So helpful! Thank you for explaining such a complicated topic so clearly. My client's K1 Sales Schedule has a few extra columns, but your clear guidance helped me figure it out. I can't tell you how many IRC tax rules and laws regarding 751 gains I've researched over the past few weeks. My husband will appreciate me not talking tax at dinner any more (or for a while, anyways....). I really appreciate you putting this video together. Thanks a bunch.
Great video!!! Very informative. Thanks.
Glad it was helpful!
It is really helpful! I hope u upload this video prior year lol because I met the same situation in that time, which really confused me!😢
Glad it was helpful!
I finally understand PTPs!
Can you do a video too on how to handle K-1 that is not final? I bought an asset on Stockpile that I had no idea it was going to make me do all this stuff, now I have to learn.
Excellent, thank you.
Hi! is this also applicable for partial sale of PTP asset? We can offset passive losses as a % of the current year gain?
How would wash sales on the brokerage statement affect the reporting if you need to use the adjusted cost basis per the K-1?
Very helpful. Thanks!
Great video
Glad it was helpful!
The video was very helpful. Just have one question: why does the 92% Lt and 8% st percentages matter for the ordinary recapture if all of it has to be reported as ordinary and no favorable Lt treatment will apply?
Hello Jason, Thank you for the clear explanation. Where/ How on Schedule E, do I report the PY losses so they flow through properly to the Schedule 1?
Hi Jason! I really appreciate your videos! I tried to schedule a consultation with you on Calendly but the credit card input field only accepts a US zip code format, and my credit card is registered to a Netherlands address, where I live. Is there any other way I can pay & schedule an appointment with you? Please let me know :)
Is this also applicable for partial sale of PTP shares if we have capital loss after adjusting for distributions (dividends)?
how would you account for the bonus depreciation for state taxes in CA? Would you do the same steps but use column 10 and 11 instead of 5 and 7 for the calculation of state taxes?
Pretty good content. Just some constructive criticism, your videos would be a lot more watchable if you edited out all the grunts and lip-smacks - you do them a lot
Very helpful! Thank you!! I do have one question. What is your email?