K1-Tax Information
The Enterprise Products Partners L.P. (EPD) 2019 tax packages are scheduled to be available online by February 28, 2020 at: www.taxpackagesupport.com/enterprise
Please note:
RECEIPT OF A TAX PACKAGE IS NOT PROOF OF OWNERSHIP IN ENTERPRISE PRODUCTS PARTNERS L.P.
For assistance with your EPD K-1s, you may call K-1 Tax Package Support toll free at (800) 599-9985, between 8:00am and 5:00pm, CST.
Any corrections to the information contained in the tax package can be submitted in one of the following ways:
(1) submitting changes through the website: www.taxpackagesupport.com/enterprise
(2) calling the toll free number (800) 599-9985
(3) fax to (866) 554-3842
(4) mail to:
Enterprise Products Partners L.P.
Attention: Tax Package Support
P.O. Box 799060
Dallas, Texas 75379-9060
FREQUENT QUESTIONS & ANSWERS
Q. Why am I receiving a Schedule K-1 rather than Form 1099?
A. A corporation reports to its shareholders, dividends, interest and various other items on Form 1099. Enterprise Products Partners L.P. is a publicly traded limited partnership. A partnership passes its profits and losses through to its partners on a Schedule K-1. Each partner reports their share of these items on their federal tax return.
Q. What should I do if the information in this package is incorrect?
A. You should notify the Partnership of the changes via mail, phone, or the internet (see 2018 Transactions Schedule) by May 31, 2019. The Partnership will update your information and send you a corrected tax package.
Q. Can I download my K-1 Information into Turbo Tax?
A. Yes. Please go to www.taxpackagesupport.com/enterprise to download a file that can be imported into Turbo Tax.
Q. What is nonrecourse debt?
A. It is Partnership liabilities for which no partner or related person bears the economic risk of loss.
Q. How do cash distributions, income, and nonrecourse debt affect my tax basis?
A. Your share of the Partnership’s taxable income and nonrecourse debt increase your tax basis. Your share of the Partnership’s taxable loss and cash distributions decrease your tax basis.
Q. Do I report the cash distributions I received as my taxable income?
A. Generally, cash distributions from the partnership are a return of capital and not reported in taxable income. However, if your cash distributions cause your tax basis to fall below zero, you must report in taxable income the portion of your cash distributions necessary to restore your tax basis back to zero.
Q. Why is the amount of cash I received different from my allocable share of partnership income, gain, loss, deduction or credit?
A. The Partnership distributes available cash as determined by the Partnership agreement. The calculation of cash available for distribution differs from the calculation of taxable income reported to the partners.
Q. How do Passive Activity Loss Limitation rules affect my income reporting?
A. Depending on when you acquired your units and the operational results of the Partnership, you will have either net passive activity income or net passive activity loss in 2018. Generally, if you have net passive activity loss, you may not recognize this loss in the current year. If you have net passive activity income, you should first offset this income with any prior suspended losses and report any net income currently. Please consult your personal tax advisor for the appropriate tax treatment.
Q. What is Unrelated Business Taxable Income (UBTI)?
A. UBTI is the distributive share of income/(loss) from a publicly traded partnership which is considered to be unrelated to the regular activities of a tax-exempt organization (including IRA’s, Keogh and other qualified retirement plans). Each tax-exempt organization is entitled to an annual $1,000 deduction to offset their net UBTI income. UBTI also includes gains on the sales of publicly traded partnership units. UBTI income and/or related gains that exceed the annual $1,000 deduction could result in your requirement to file Form 990-T, which your trustee may file on your behalf. You should consult your trustee and/or personal tax advisor for the appropriate tax treatment.
Q. If I sell my partnership units at a gain, why is part of the gain treated as ordinary income rather than capital gain?
A. A sale of partnership units is treated as if there were a sale of the partner’s allocable share of each of the Partnership’s assets. Gain on the sale of assets for which depreciation deductions have been taken is treated as ordinary income rather than capital gain.
Q. What is Alternative Minimum Tax (AMT) Depreciation Adjustment?
A. The AMT depreciation adjustment amount represents the difference between depreciation for AMT purposes and depreciation for regular tax purposes. This adjustment is necessary in the calculation of your alternative minimum tax.
Q. Am I required to file tax returns in any state in which I do not live?
A. Certain states require partners to file tax returns in the states in which the Partnership operates. The Partnership complies with state tax reporting requirements.
Q. Does EPD have any “reportable transactions”?
A. No.