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Author: gdrescher Add to my Favorite Fools Ignore this person (you won't see their posts anymore) Number: of 121144  
Subject: Tax prep for Limited Partnerships Date: 3/29/2014 8:03 PM
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I'm a small investor using Trade King for all my online trades.

I handed my tax accountant the 1099 and Schedule D forms provided by Trade King for 2013 and after reviewing them he needed other forms for my trades involving Limited Partnerships which he was able to obtain.

Apparently entering all of the data required for LP's is substantially more involved than other stocks. His point was that it took about 20 minutes of research and entering the data for each stock/LP. This costs me money.

Being that I'm only making $2000-$3000 trades how much should I take into account the cost of preparing my taxes for these types of trades?

The cost for preparing tax on LP's is taking a chunk of what I earn in dividends.
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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: 120625 of 121144
Subject: Re: Tax prep for Limited Partnerships Date: 3/29/2014 8:59 PM
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LPs are not good vehicles for frequent, small trades. They're better suited as a long-term investment.

Unlike stocks, your cost basis changes daily, because you pick up your share of the partnership's income, expenses, gains, losses, etc. on your K-1, and your cost basis is adjusted accordingly. And you don't know those numbers until you get your K-1 when the year is over - INCLUDING, how much is ordinary income, as opposed to capital gain/loss.

Bill

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