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Author: Wradical Big gold star, 5000 posts Old School Fool Add to my Favorite Fools Ignore this person (you won't see their posts anymore) Number: of 123527  
Subject: Re: Taxation of MLP Unit Sales Date: 3/6/2013 8:39 PM
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My questions, first: do you just work through this Worksheet and then enter the amount of Ordinary Gain on Form 4797 and the resulting Capital Gain/Loss on your Schedule D, and AMT adjustment on 6251, as indicated on the Worksheet?

Yes, that's pretty much it.

Anything else outside of the Worksheet you should be deducting from the Worksheet numbers?

I'm not sure - what else do you have, that you're considering?

Finally, one of the Worksheets I got said to the effect that "if you have disposed of all of your MLP units in 2012, you will also be able to recognize your prior year(s) cumulative suspended MLP passive losses, if any, in the current year." Where do you find all these cumulative suspended passive losses?

If you had disallowed passive losses (and for publicly traded partnerships, you have to keep the entities separate, it would be on the prior years' Form 8582, which should have a separate schedule for each publicly traded partnership (PTP).

Once you know that amount of losses, where do you recognize these losses? Do you offset them against the amount of Ordinary Gain from the Worksheet?

Or will they be deducted when you enter all the other numbers from the MLP into your tax program for the year?

Against the current year's income, if any, and gain on the sale of the partnership interest. Or - even if you have a loss on the sale, the suspended losses will be allowed in full this year. Hopefully Tax Act will do the job of prorating the allocation for you. I haven't used that program.

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