Skip to main content
Message Font: Serif | Sans-Serif
 
No. of Recommendations: 4
Will I receive a K-1 if I hold a MLP for a brief period, during which no distributions were actually paid to me?

Yes. The K-1 will report your share of the partnership's income for the relevant period. Whether or not there were distributions to you is irrelevant.

If so will I still be required to complete the MLP-related forms in next year's return?

This is why we often frown on the terms "this year" and "next year" in this forum. A year should be identified by a 4-digit number. Besides, it's shorter. Especially during tax season, the term "this year" often refers to the year just ended, as it's the year you're currently working on. Was this short period of ownership in 2019 or 2020? If 2019, then you should expect to receive a 2019 K-1 schedule. If you're referring to 2020, then yes, you will receive a K-1 "next year."

I am especially concerned about having to file returns for multiple states, in which I otherwise have no requirement to file

If your partnership operated in multiple states then yes, your concern is correct. Any every state has its own rules about the minimum income requiring you to file.

The investment is in a taxable brokerage account in US.
You should still receive the K-1 directly from the partnership.

Bill
Print the post  

Announcements

Disclaimer:
In accordance with IRS Circular 230, you cannot use the contents of any post on The Motley Fool's message boards to avoid tax-related penalties under the Internal Revenue Code or applicable state or local tax law provisions.
What was Your Dumbest Investment?
Share it with us -- and learn from others' stories of flubs.
When Life Gives You Lemons
We all have had hardships and made poor decisions. The important thing is how we respond and grow. Read the story of a Fool who started from nothing, and looks to gain everything.
Contact Us
Contact Customer Service and other Fool departments here.
Work for Fools?
Winner of the Washingtonian great places to work, and Glassdoor #1 Company to Work For 2015! Have access to all of TMF's online and email products for FREE, and be paid for your contributions to TMF! Click the link and start your Fool career.