for live program only reporting master limited...
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WHO TO CONTACT DURING THE LIVE EVENT
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Reporting Master Limited Partnership K-1s
on Partners’ Returns
THURSDAY, JANUARY 24, 2019, 1:00-2:50 pm Eastern
FOR LIVE PROGRAM ONLY
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FOR LIVE PROGRAM ONLY
THURSDAY, JANUARY 24, 2019
Reporting Master Limited Partnership K-1s on Partners' Returns
Robert Baldwin, National MLP Tax Practice Leader
PricewaterhouseCoopers, Dallas
Tim Buford, Tax Partner
PricewaterhouseCoopers, Houston
Ashley Freeman, Tax Manager
PricewaterhouseCoopers, Houston
Jeffrey L. May, CPA, Tax Manager
PricewaterhouseCoopers, Washington, D.C.
Bill Baker Smith, Director
PricewaterhouseCoopers, Dallas
Notice
ANY TAX ADVICE IN THIS COMMUNICATION IS NOT INTENDED OR WRITTEN BY
THE SPEAKERS’ FIRMS TO BE USED, AND CANNOT BE USED, BY A CLIENT OR ANY
OTHER PERSON OR ENTITY FOR THE PURPOSE OF (i) AVOIDING PENALTIES THAT
MAY BE IMPOSED ON ANY TAXPAYER OR (ii) PROMOTING, MARKETING OR
RECOMMENDING TO ANOTHER PARTY ANY MATTERS ADDRESSED HEREIN.
You (and your employees, representatives, or agents) may disclose to any and all persons,
without limitation, the tax treatment or tax structure, or both, of any transaction
described in the associated materials we provide to you, including, but not limited to,
any tax opinions, memoranda, or other tax analyses contained in those materials.
The information contained herein is of a general nature and based on authorities that are
subject to change. Applicability of the information to specific situations should be
determined through consultation with your tax adviser.
Master-Limited PartnershipsK-1 Reporting
www.pwc.com
PwC
Agenda
1. Welcome and Introductions
1. Get to know the industry
1. Tax Reform
1. Tax Implications to Investors
1. The K-1 Reporting Process
1. Questions 6
PwC
PwC Welcome and Introductions
Rob Baldwin
PwC MLP Tax Leader
Bill Smith
MLP Project Director
Ashley Freeman
PFS Tax Manager
Tim Buford
Private Client Services Partner
Jeff May
Washington National Tax Manager
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PwC
The MLP Compliance Process
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PwC
Get to know the industry
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PwC
Tax Reform - How did MLPs Fair
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PwC
Investing in MLPs - You need to know…
§199A Deduction for Qualified Passthrough Business Income
● Section 199A provides many noncorporate taxpayers a 20% deduction for qualified business income (QBI) from a trade or business operated directly or through a pass-through entity.
● Individuals, trusts, and estates with QBI, qualified REIT dividends, or qualified PTP income
may qualify for the deduction.
● Section 199A deduction has the effect of reducing the top tax rate on qualifying income from
37% to 29.6% (i.e., 80% of 37%).
● MLPs will report the amount of qualified PTP income for purposes of section 199A on Line 20AD of the Schedule K-1.
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PwC
Investing in MLPs - You need to know…
§163(j) Limitation on Deductibility of Business Interest Expense
● As a result of tax reform, section 163(j) limits the deductibility of business interest expense to the sum of a taxpayer’s business interest income plus 30% of the taxpayer’s adjusted taxable income (ATI).
● An investor’s share of deductible business interest income is calculated by the MLP and
allocated to the partner through Line 1 on the Schedule K-1.
● If a partnership is limited on the deductibility of business interest expense, the investor will
have an allocation of excess business interest expense (EBIE) on Line 13K of the Schedule K-1.
An investor will be able to take a deduction for this amount in a future year only to the extent
it is later allocated excess taxable income (ETI).
● A partnership may also include other items on an investor’s Schedule K-1, which may need to be used in determining an investor’s own ATI for purposes of section 163(j).
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PwC
Investing in MLPs - You need to know…
§469(k) Limitation on Deductibility of Passive Activity Losses from MLPs
● An investor’s ownership of an MLP is generally treated as a passive activity, and therefore allocations from the MLP to the investor may be subject to the passive activity loss limitation rules of section 469.
● Section 469(k) requires that the passive activity loss limitation be applied separately for each MLP investment, restricting an investor’s ability to net losses from one MLP investment with the income from another MLP investment or other passive activities of the partner.
● Disallowed passive activity losses for an MLP are instead carried forward and will only be able
to offset future passive activity income from the MLP or until the investor entirely disposes of
its MLP interest.
● Passive activity losses also cannot be used to offset portfolio items allocated from the MLP
(e.g., interest income, dividend income, etc.).
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PwC
2018 Schedule K-1
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PwC
2018 Schedule K-1
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PwC
2018 Schedule K-1
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PwC
Graphic Guide
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PwC
Activity Tracking (K-1 Worksheets)
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PwC
Activity Tracking (K-1 Worksheets)
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PwC
Activity Tracking (K-1 Worksheets)
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PwC
Unified Basis Sales Schedule
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PwC
Additional items to note...
§199A Deduction for Qualified Passthrough Business Income
- PTP income also includes any gain recognized upon the disposition of the PTP interest to the extent it is treated as ordinary income under the “hot asset” rules of IRC Sec. 751(A)
- 199A Deduction is the 20% deduction for QBI. No wage or asset limitations.
IRC SECTION 751 STATEMENT
The taxpayer has reported ordinary income upon the disposition of units in [INSERT
PUBLICLY TRADED PARTNERSHIP NAME HERE], as provided by the General
Partner. The amount was determined in accordance with Internal Revenue Code
Section 751. Detailed Information is available in the office of the General Partner upon
request.
Important statement to add to the 1040 in the year of disposition:
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PwC
Investor Ownership Schedule
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PwC
Comprehensive Planning Timeline
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PwC
Tax Package Support - Available ClientsAlliance Holdings GP, LPAlliance Resource Partners LPAllianceBernstein Holding L.P.American Midstream Partners LPAmeriGas Partners, L.P.Andeavor Logistics LPAndeavor Logistics LP Series A Preferred UnitsAntero Midstream Partners LPArchrock Partners, L.P.Ares Management, L.P.Ares Management, L.P. (7.00% Series A Preferred Units)Atlas Energy Group, LLCBlack Stone Minerals, L.P. (Common Units)Black Stone Minerals, L.P. (Preferred Units)Black Stone Minerals, L.P. (Subordinated Units)Blueknight Energy Partners - Common UnitsBlueknight Energy Partners - Series A PreferredBoardwalk Pipeline Partners, L.P.BP Midstream Partners LPBreitburn Energy Partners LP - Common UnitsBreitburn Energy Partners LP - Series A PreferredBrookfield Business Partners, L.P.Brookfield Infrastructure Partners, L.P.Brookfield Property Partners, L.P.Brookfield Renewable Partners, L.P.Buckeye Partners, L.P.Calumet Specialty Products Partners, L.P.Cedar Fair LPCheniere Energy Partners, LPChesapeake Granite Wash TrustCNX Midstream Partners LP Compass Diversified HoldingsCompass Diversified Holdings (7.25% Series A Preferred)Compass Diversified Holdings (7.875% Series B Preferred)CONSOL Coal Resources LP (fka CNX Coal Resources LP)Crestwood Equity Partners LPCSI Compressco LPCVR Partners, LPCVR Refining, LPCypress Energy Partners, L.P.Dominion Energy Midstream Partners LPDorchester Minerals, L.P.ECA Marcellus Trust IEmerge Energy Services LPEmpire State Realty OP, L.P. Private PreferredEmpire State Realty OP, L.P. Series 250Empire State Realty OP, L.P. Series 60Empire State Realty OP, L.P. Series ESEmpire State Realty OP, L.P. Series PR
Enbridge Energy Partners, L.P.Energy 11, L.P.Energy Resources 12, L.P,Energy Transfer Equity LPEnergy Transfer Partners LPEnergy Transfer Partners LP Series AEnergy Transfer Partners LP Series BEnLink Midstream Partners, LP (Common Units)EnLink Midstream Partners, LP (Series C Preferred)Enterprise Products Partners L.P.Enviva Partners, L.P.EQT GP Holdings, LPEQT Midstream Partners, LPEV Energy Partners, L.P.Foresight Energy, LPFortress Transportation & Infrastructure InvestorsGlobal PartnersGreen Plains Partners LPHawaiian Macadamia Nuts Orchards LP Hi-Crush Partners LPHolly Energy Partners, L.P.Icahn Enterprises, LPInvesco DB Agriculture FundInvesco DB Base Metals FundInvesco DB Commodity Index Tracking FundInvesco DB Energy FundInvesco DB G10 Currency Harvest FundInvesco DB Gold FundInvesco DB Oil FundInvesco DB Precious Metals FundInvesco DB Silver FundInvesco DB US Dollar Index Bearish FundInvesco DB US Dollar Index Bullish FundiShares Commodity Optimized TrustiShares S&P GSCI Commodity-Indexed TrustJMP Group, LLCKimbell Royalty Partners LPKKR & Co. L.P.KKR & Co. L.P. (6.50% Series B Preferred Units)KKR & Co. L.P. (6.75% Series A Preferred Units)KKR Financial Holdings LLC Preferred SharesLandmark Infrastructure Partners LP Common UnitsLandmark Infrastructure Partners LP Series A Landmark Infrastructure Partners LP Series B Lazard LtdLINN Energy, LLCMagellan Midstream Partners, L.P.Martin Midstream Partners L.P.Midcoast Energy Partners, L.P.
Mid-Con Energy Partners, LPMPLX LPNatural Resource Partners L.P.NGL Energy Partners L.P.NGL Energy Partners L.P. - Class B PreferredNuStar Energy, LP (NS)NuStar Energy, LP Series A Preferred UnitsNuStar Energy, LP Series B Preferred UnitsNuStar Energy, LP Series C Preferred UnitsNuStar GP Holdings, LLC (NSH)Oaktree Capital Group, LLCOasis Midstream Partners LPOCI Partners LPONEOK Partners, L.P.Phillips 66 Partners LPPlains All American Pipeline, L.P.Plains All American Pipeline, L.P. Series BProShares Managed Futures Strategy (FUTS)ProShares Short Euro (EUFX)ProShares Short VIX Short-Term Futures ETF (SVXY)ProShares Ultra Bloomberg Commodity (UCD)ProShares Ultra Bloomberg Crude Oil (UCO)ProShares Ultra Bloomberg Natural Gas (BOIL)ProShares Ultra Euro (ULE)ProShares Ultra Gold (UGL)ProShares Ultra Silver (AGQ)ProShares Ultra VIX Short-Term Futures ETF (UVXY)ProShares Ultra Yen (YCL)ProShares UltraPro 3X Crude Oil ETFProShares UltraPro 3X Short Crude Oil ETFProShares UltraShort Australian Dollar (CROC)ProShares UltraShort Bloomberg Commodity (CMD)ProShares UltraShort Bloomberg Crude Oil (SCO)ProShares UltraShort Bloomberg Natural Gas (KOLD)ProShares UltraShort Euro (EUO)ProShares UltraShort Gold (GLL)ProShares UltraShort Silver (ZSL)ProShares UltraShort Yen (YCS)ProShares VIX Mid-Term Futures ETF (VIXM)ProShares VIX Short-Term Futures ETF (VIXY)Restaurant Brands International LPRhino Resource Partners, L.P.Rice Midstream Partners LPRiverstone Energy LimitedSanchez Midstream Partners LPSandRidge Mississippian Trust ISandRidge Mississippian Trust IISandRidge Permian TrustSouthcross Energy Partners LP
Spectra Energy Partners, LPSprague Resources LPSteel Partners Holdings, L.P.Steel Partners Holdings, L.P. - 6% Series A Preferred (PRA)Suburban Propane Partners, L.P.SunCoke Energy Partners, L.P.Sunoco LPTallgrass Energy Partners, LPTC PipeLines, LPTeekay LNG Partners L.P.Teekay LNG Partners L.P. Series A PreferredTeekay LNG Partners L.P. Series B PreferredTerra Nitrogen Company, L.P.Teucrium Agricultural FundTeucrium Corn FundTeucrium Soybean FundTeucrium Sugar FundTeucrium Wheat FundThe Carlyle Group L.P.The Carlyle Group L.P. (5.875% Series A Preferred Units)TransMontaigne Partners LPUnited States 12 Month Natural Gas Fund, LP (UNL)United States 12 Month Oil Fund, LP (USL)United States 3x Oil Fund (USOU)United States 3x Short Oil Fund (USOD)United States Agriculture Index Fund (USAG)United States Brent Oil Fund, LP (BNO)United States Commodity Index Fund (USCI)United States Copper Index Fund (CPER)United States Diesel Heating Oil Fund, LP (UHN)United States Gasoline Fund, LP (UGA)United States Natural Gas Fund, LP (UNG)United States Oil Fund, LP (USO)United States Short Oil Fund, LP (DNO)USA Compression Partners, LPUSD Partners LPValero Energy Partners LPViper Energy Partners LPWestlake Chemical Partners, LPWestmoreland Resource Partners, LPWilliams Partners L.P.Winthrop Realty Liquidating TrustWisdomTree Continuous Commodity Index Fund
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PwC
Tax Package Support
• How can the call center help me?
- Mail or Email K-1s
- Make corrections to name, address, and ownership records
- Update cost basis information
- Will not provide tax advice
• www.taxpackagesupport.com
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PwC
Tax Package Support - Login
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PwC
Tax Package Support - Actions
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PwC
Tax Package Support - Change Request
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PwC
Tax Package Support - TurboTax Export
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PwC
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Tax Package Support - Gain/Loss Calculator
www.taxpackagesupport.com
Tax Package Support for Bulk K-1s
Access all your K-1s in 1 location
● View all your partner K-1s across multiple PTPs
● Download K-1 tax packages in a single zip file
● View real time status of your K-1 availability and
downloads
When you need it
● Access K-1s as they are released by the
Partnerships or wait and download all at once
● TPS will keep track of what you’ve downloaded
so you can retrieve only newly released K-1s
● TPS will let you see and download K-1s that have
been updated since your last download
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www.taxpackagesupport.com
Tax Package Support for Bulk K-1s
Organize your K-1 information
● View Partnerships by CUSIP or Ticker symbol
● Download by a single Partnership or multiple
● Provide output files organized by Partnership or
Investor
Format your output
● PDF format of the investor tax package
● Excel format of package components
- Fed K-1 - State
- Ownership - Sales
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Questions?
©2018 PwC. All rights reserved. Not for further distribution without the permission of PwC. "PwC" refers to firms within the global network of firms PricewaterhouseCoopers International Limited
(PwCIL). The information published on the site is not professional advice. You should not act upon such information without obtaining professional advice based on specific features of each
particular situation. PwC is not liable for damages caused to any person if their actions / inactions result from familiarization with the proposed information.
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