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Lev
Lev, Tax Advisor
Category: Tax
Satisfied Customers: 28084
Experience:  Taxes, Immigration, Labor Relations
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I WANT TO KEEP TRACK OF MY COST BASES UNITS ON A YEARLY

Customer Question

I WANT TO KEEP TRACK OF MY COST BASES FOR MLP UNITS ON A YEARLY BASES. I'VE READ SEVERELY ARTICLES AND I'M SURE ABOUT ALL THE FACTORS THAT HAVE TO BE CONSIDERED. IT SOUNDS AS IF ALL THE INFORMATION IS LISTED ON THE ANNUAL K-1'S. I NEED TO BE SURE OF WHICH DATA IS USED AND HOW TO DETERMINE THE NEW COST BASES.
BOB
Submitted: 8 months ago.
Category: Tax
Expert:  Lev replied 8 months ago.

Your assumptions are correct - the basis of your partnership interest is re-calculated (adjusted) every year based on items reported on K1 statement.
you start with your purchase price (original investment) and then you prepare

Worksheet for Adjusting the Basis of a Partner's Interest in the Partnership

See page 2 in instructions

https://www.irs.gov/pub/irs-pdf/i1065sk1.pdf

Expert:  Lev replied 8 months ago.

Worksheet for Adjusting the Basis of a Partner's Interest in the Partnership

See page 2 in instructions

https://www.irs.gov/pub/irs-pdf/i1065sk1.pdf

You do need K1 statements for every year you owned the partnership interest and prepare the worksheet for every year.

If you are using a tax preparation software - you will need to locate that worksheet and keep track every year.

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