Limited Partnership (K-1 Question)

K-1s are required to be furnished timely to the partners, members or S Corp owners; however, sometimes extensions are filed and the individual taxpayer is out of luck until the k-1s are received. You may be forced to file for an extension if the k-1s are not received in time for you to file your individual returns by 4/15.

By the way, what you report on your individual return is not related to the amount of the distributions you have received; the k-1s will tell you your share of the profit or loss to report on your individual returns. Be careful, as things like interest and depreciation are separately reported on the k-1s (they are not part of your share of the ordinary income or loss).

I strongly recommend against filing your return until you have received the k-1s.

quote:

---

You receive k-1’s from the company so you are stuck until they file their taxes to file yours. And most companies are going to do an extension to file so you’re unlikely to get it before April.

You could probably file and get away with it since it’s such a small amount. If you get audited you can just play dumb

---

Agree with all this sage advice & add that you can also file your 1040 now without the K-1 and then file an amended 1040 after you receive the k-1

Welcome to the world of PTP (Publicly Traded Partnerships) investing.

You will get a K-1 which will likely show less income than the distributions you received (that's how these things work... deferred taxation on cash received).

It may even show a loss... and if so... that loss is not deductible until you have income from that PTP.

Your tax return just got more complicated.

You can sign up online to get notified when the K-1 is ready, and download it from the website. That will be quicker than waiting for it to arrive in the mail.

LINK

Yes it will be mid march but probably not later. They "can" extend but most of these types of operating entities do not.

I'm a poor. I get a refund.

The wife gets a K-1 and it's always the last thing to arrive.

I bought some stock in MLP last year because a friend of mine worked for the company and told me to get in. I bought very little, and then when I saw what a pain in the a** it was going to be with the K1 I sold it immediately, never got a distribution. I think I saw on my 1099 from Vanguard that I made $3.74. I don't even know if I'll get a form for that little of time and amount. Even if I did, is worth doing anything with it?

Agree with everyone above. Filed my taxes not knowing I was going to even get a K-1, then amended by return when I received it. Well, that put me in the back of the line to get my refund. It didn't show up for 10 months, but at least they included some interest.

The stock was even in tax deferred account, but it didn't matter. Even though the distributions were less than $1k, I still had to include it in my return.

Sold the stock and bought an ETF that included a large position in that stock, but without the K-1 nightmare.