Long Shot: Any Pelican accountants know how the KMP merger is handled with Turbotax?

[G50]

I know this is a long shot, but my Googling has come up empty (or made things even more confusing).

Tax reporting for these MLPs has always been a bit of a hassle, but with this "forced sale" caused by the KMP merger (which I'm sure benefited Richard Kinder billions and billions, but really screwed us unitholders tax-wise), it's now really a nightmare.

Anyone else going through this? I won't bore with the specific questions unless someone knows what the heck I'm even talking about!

[VincentVega]

I'm in the same boat, frustrating. I received the schedule K so that should be the same as previous years. In the 1099-b for the kmp sale doesnt list a cost basis and the sale price is confusing. Even better is there is no cost basis listed for the new shares.

Sure wish I sold before this mess.

[G50]

I don't think selling would have made it any less of a mess. If you had sold before the merger, I think you would have had these same issues. The merger for tax purposes is basically a forced "sale."

I think I'm slowly figuring it out.

Here's one that helps:

https://www.bogleheads.org/forum/viewtopic.php?f=2&t=159254&newpost=2391567

This one, too. Seems a little simpler:

https://ttlc.intuit.com/questions/2737490-how-do-i-account-for-sale-of-kmp-turbotax-for-2014-return-holders-were-forced-to-sell-their-interest-in-kmp-so-how-to-account-for-sale-of-an-mlp-in-turbotax

How to report the sale of a MLP such as KMP where the sale is reported on a 1099-B.

To force your ordinary gain portion of the sale onto a 8949 form:

1. Go go business items and open the K1.

2. Follow directions to report that you sold your partnership interest

3. Enter a sale price of 0 and a partnership basis of zero.

4. do enter the ordinary gains from your IRC 751 statement in ordinary gains

5. adjust the amount for AMT and enter that in the right column.

To force the capital gain section onto an 8949 form:

1. Open the 1099-B

2. You need to adjust the cost basis in either box B (short term) or Box E (long term) or both depending upon when shares were acquired.

3. Calculate your basis this way:

Original cost + adjustments to tax basis + Ordinary gains (entered on the k1)

[KFC911]

No REAL advice here...except to keep your MLPs in a tax sheltered account (IRA) and simply avoid all of the hassle. Glad I don't have to deal with this every year and I've been holding KM(P/I) for a long time...

[G50]

That's good advice.

When I got into these 10 years ago, I was given the opposite advice - that because of the tax benefits, you should use money that isn't already tax sheltered.

But yeah, I'd do it your way, knowing what I know now!