tag:blogger.com,1999:blog-6318055043707993918.post3285789230102145214..comments2024-02-20T02:12:18.090-05:00Comments on THE WANDERING TAX PRO: THE K-1 BLUESRobert D Flachhttp://www.blogger.com/profile/06034127763662917220noreply@blogger.comBlogger8125tag:blogger.com,1999:blog-6318055043707993918.post-53084512466180733322016-11-28T14:01:27.489-05:002016-11-28T14:01:27.489-05:00I have numerous clients that have invested in PTP&...I have numerous clients that have invested in PTP's. I charge appropriately for the time I spend inputting all the data from the K-1's. I tell my client the approximate time/charge for each K-1. Then tell them that they need to figure in the cost of my preparation fees when investing in PTP's and resulting gain or loss. Yes, I have helped clients figure out their ROI and in many cases these clients have lost money on these investments. Especially recently (OIL & GAS). I have had to call financial advisors on behalf of my clients to tell them how much time it takes/ costs my clients. They usually have no idea how these K-1's are reported and most of the financial advisors get my clients out of these costly PTP's.<br /><br /><br /><br />Anonymousnoreply@blogger.comtag:blogger.com,1999:blog-6318055043707993918.post-72584429064469094342013-04-10T13:08:39.307-04:002013-04-10T13:08:39.307-04:00I see this topic was last commented on some time a...I see this topic was last commented on some time ago, but I too have been frustrated by the number of these PTPs for oil and gas that our local financial advisors have gotten my clients into. I don't think the clients have any idea what I go through keeping tract of the suspended losses and refreshing my memory every time I pick one of these K-1s up. My clients that have these are generally retirees, and they don't even bring me all the K-1s when they receive them. I have created IDs on the web sites of these PTPs so I can access the K-1s myself! <br /><br />I contacted the financial planner that is pushing these and suggested that he stop putting one of my clients (the forgetful one) in these investments, because if I retire from tax preparation, I think my client will be shocked at the cost of having his taxes done. I have never charged him more than $180 to prepare his return, even though some years I have had over 20 hours into it. When I spoke with the planner,he was FURIOUS that I would suggest that someone should stop using such a great investment just for the "convenience" of easier tax preparation. <br /><br />Further, the client has $50k of carryover losses from this same planner's investments, plus the suspended losses from the PTPs. He is 75 years old, and probably will not live long enough to use up his losses, which will be lost when he dies.<br /><br />The only person I see benefitting from all this is the financial planner. Anonymousnoreply@blogger.comtag:blogger.com,1999:blog-6318055043707993918.post-92016438597123999552012-03-03T07:51:10.820-05:002012-03-03T07:51:10.820-05:00I disposed of a Limited Partnership associated wit...I disposed of a Limited Partnership associated with a golf course on Dec. 31, 2011, the last day of the year. I received my K-1 but it does not indicate it is the "Final" K-1. Isn't a "Final" K-1 required if I disposedof it?Anonymousnoreply@blogger.comtag:blogger.com,1999:blog-6318055043707993918.post-34176507176406396972008-04-11T12:16:00.000-04:002008-04-11T12:16:00.000-04:00You are right about the difficulty posed by K1s, b...You are right about the difficulty posed by K1s, but the bigger issue is you get hammered when you sell them. Why? Because every year the box 1 ordinary business loss serves to reduce your basis cost in the LP, if it is a PTP. So when you sell, you get a huge capital gain!!!<BR/><BR/>I mistakenly invested in several LPs, and I will never dos so again.Anonymousnoreply@blogger.comtag:blogger.com,1999:blog-6318055043707993918.post-7221174586556618972007-08-09T08:36:00.000-04:002007-08-09T08:36:00.000-04:00Thank you for response and advice re: "inherited" ...Thank you for response and advice re: "inherited" partnerships. I hope to be filing an amendment after I find a new accountant! re: "rollover" was bad choice of words, I should have said "exchange" as I believe there is something called a 1031 account that is used for flipping houses to avoid paying capital gains taxes. Would you recommend this?Anonymousnoreply@blogger.comtag:blogger.com,1999:blog-6318055043707993918.post-3549578102970165342007-08-07T14:20:00.000-04:002007-08-07T14:20:00.000-04:00Anonymous-(1) If you truly inherited the limited p...Anonymous-<BR/><BR/>(1) If you truly inherited the limited partnership investments as beneficiary your “cost basis” should be the fair market value of the investments on the date of death of the original owner – and not the $15,000 that it originally cost the deceased. You should check with the Executor to find out the value of these investments on the federal estate (if required) or state inheritance tax return. <BR/><BR/>(2) You cannot “rollover” a limited partnership investment. You can only rollover an IRA or pension distribution. <BR/><BR/>TWTPRobert D Flachhttps://www.blogger.com/profile/06034127763662917220noreply@blogger.comtag:blogger.com,1999:blog-6318055043707993918.post-73865321828992162672007-08-07T13:34:00.000-04:002007-08-07T13:34:00.000-04:00I "inherited" 4 of these. What a nightmare for the...I "inherited" 4 of these. What a nightmare for the taxpayer as well! 2 have recently sold and I get to pay all of the taxes! Ex. $15,000.00 investment in the 80s equals $80,000 today with a tax liabiilty of $15,500 even though I only netted $3,000 from sale! How can I get rid of the last two w/o tax consequence other than roll over? I wish I had been disinherited!Anonymousnoreply@blogger.comtag:blogger.com,1999:blog-6318055043707993918.post-63561150347810983262007-07-19T15:57:00.000-04:002007-07-19T15:57:00.000-04:00Don't know about the brokerage industry, but priva...Don't know about the brokerage industry, but private bank investment clients are introduced to partnerships as a wrapper for alternative investment vehicles that provide diversification for a stock/bond/cash portfolio by virtue of the undelying investment's low correlation to markets. Fees are no different in my world and we are not compensated based on product sales. The diversification can provide significant risk reduction to a portfolio.<BR/><BR/>That being said, many of our professional (atty,MD) clients come to us with existing L/P's of the old tax shelter variety - - most don't remember why they bought them.Anonymousnoreply@blogger.com