Thursday, March 22, 2012

K-1 Woes

Q.  I'm trying to help my dad who has a fist full of K-1 forms, all of which are checked as Publicly Traded Partnerships.  I am at a total loss as to where to enter some of the designations such as Box 13T* which is marked STMT, and Box 17A. What am I supposed to do with these amounts?

A.  Most people who invest in these securities own about a 0.00001020 interest in the partnership. Although these amounts represent your share, quite often they are insignificant. As to the Box 13T designation, you should have a supplementary report breaking down exactly what this amount is. Basically Box 13T is Domestic Production Activities Information, which may or may not even apply to your dad's return. As to Box 17A, that is an adjustment which belongs on Form 6251 for the Alternative Minimum Tax computation. Perhaps it's time to get a pro to prepare his tax if he indeed has many investments of this nature. K-1 Forms can be challenging, even with my 32 years of experience!

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