TP was not an active partner and had more than 25 investment funds . TP received more than 25 K-1s from all these partnerships. But TP insisted that as he was not an active partner and these are investment funds partnerships, no separate reporting is needed on Form 1040 but aggregate all K-1s into one reporting.
TP wants to aggregate all K-1s on F1040 and not separate reporting. TP informed me that He got this from the IRS website. I suspect that TP wanted to do this so that the tax preparation fee is lower on one aggregation K-1 reporting instead on separate reporting (more than 25 K-1s).
Did you ever encounter this aggregation rules on multiple K-1s as I have not seen one? Where in The IRS website/instructions one can see that every K-1 should be reported on f1040 not aggregate all K-1s into one? My understanding is that each K-1 should be reported on f1040 not aggregate into one K-1 (different EIN #, different partnership, IRS filing center, capital accounts, etc,,,).
Thanks for your advice and comment.
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He got what from IRS? Did he bring you something in writing or a link to what he read?
Ive had clients with over 50 of those stupid limited partnerships, all losing money, theyre a huge PITA. Theyve finally gotten rid of almost all of them!
@Just-Lisa-Now- Thanks for your comments.
He cannot produce the IRS website with the purported IRS suggestion but sent me this link https://finance.zacks.com/use-k1-form-taxes-1804.html that he said support his aggregation rules on multiple K-1s reporting. I told him nowhere in the article suggested the idea.
I think this is one of the moment that I need to inform TP that we cannot continue with the preparation of the return without properly reporting multiple K-1s. Any comments?
If they are all different entities, I dont know how you would be able to aggregate them altogether (that actually sounds like more work trying to total all those damn boxes on a bunch of different ones and have it all make sense), how would you keep track of basis when only a few of them sell?