K-1 Line 13K requires Form 8990 unless exempted

Forum|Forum|1 year ago
March 20, 2025
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I am looking for an opinion as to whether I am exempted from filing form 8990 based on the nature of the partnership business. I received a Schedule K-1 from Energy Transfer (ET). It reports a number on line 13K "Excess Business Expense". Turbotax advises that I may need to file a form 8990. The form instructions provide an exemption from filing for "certain regulated utility businesses", defined to include "Gas or steam through a local distribution system; or Transportation of gas or steam by pipeline". ET describes itself as: "Energy Transfer LP (NYSE: ET) owns and operates one of the largest and most diversified portfolios of energy assets in the United States, with more than 130,000 miles of pipeline and associated energy infrastructure." Does anyone have an opinion whether I am exempted from filing form 8990?

Mike9241

My opinion is you don't qualify for the exemption

From what I understand ET is not a regulated utility business. you can contact customer relations to see if thy have anything to say about this

*****Business Summary
Energy Transfer LP, together with its subsidiaries, provides energy-related services in the United States. It operates through Intrastate Transportation and Storage; Interstate Transportation and Storage; Midstream; Natural Gas Liquid (NGL) and Refined Products Transportation and Services; Crude Oil Transportation and Services; Investment in Sunoco LP; Investment in USA Compression Partners, LP (USAC); and All Other segments. The company owns and operates natural gas transportation pipelines and storage facilities; and approximately 12,200 miles of intrastate natural gas transportation pipelines and 20,090 miles of interstate natural gas pipelines. It also sells natural gas to electric utilities, independent power plants, local distribution and other marketing companies, and industrial end-users. In addition, the company owns and operates natural gas gathering pipelines, processing plants, and treating and conditioning facilities; and natural gas gathering, oil pipeline, and oil stabilization facilities. Further, it owns 5,700 miles of NGL pipelines; NGL fractionation and storage facilities; and other NGL storage assets and terminals. Additionally, the company provides crude oil transportation, terminalling, acquisition, and marketing activities; owns and operates approximately 17,950 miles of crude oil trunk and gathering pipelines; and sells and distributes motor fuels and other petroleum products under the Sunoco and EcoMaxx brands. It also offers natural gas compression; wholesale power trading; and carbon dioxide and hydrogen sulfide removal services, as well as manages coal and natural resources properties; sells standing timber; leases coal-related infrastructure facilities; and collects oil and gas royalties. The company was formerly known as Energy Transfer Equity, L.P. and changed its name to Energy Transfer LP in October 2018. Energy Transfer LP was founded in 1996 and is headquartered in Dallas, Texas.

Website
energytransfer.com

Ciao4

I also am a partner in Energy Transfer LP.

Does This Mean we have to attach Form 8990?

If I call Energy Transfer what exactly do I ask them?

SamLin

from k1 page 12 . I think we are so f. I should close ET in 2022. 😞

Line 13K - Excess Business Interest Expense (EBIE):
This amount represents your share of EBIE. Report this amount on Form 8990,
Schedule A. If you were allocated EBIE this year or in previous years and you sell
any of your units, you may need to adjust your basis by your cumulative deferred
EBIE. If you are allocated excess taxable income on Schedule K-1, Line 20AE in a
future year, you may be able to recover the EBIE previously reported to you as a
deduction in the year you receive excess taxable income. For additional guidance,
please consult your tax advisor

StanOrel

I’m actually still trying to figure this out. I had bought a really small number of shares of ET that the number in 13K is a “1”. Does it mean $1 ? Is there any point for me to file Form 8990? And what information do I use to fill the rest of that form, because I have no idea what Tentative Taxable Income from Line 6 means on that 8990 form…

Mike9241

yes $1. the easiest thing to do would be to omit line 13K. Turbotax does not support the form which means if you have that $1, you won't be able to e-file You would have to manually complete the 8990 and enter the $1 if deductible, on the appropriate form and then mail in your return with the 8990. The mailing costs would negate any tax savings from that $1.

StanOrel

@ Mike9241

Ohh, is the number put in 13k used as a deductible to help with our taxes?

If it just cancels that $1 I guess there's not really a point. Thanks for your input!

Michmom23

Did anyone contact Energy Transfer to get an answer to the original question that was posted (exempt from filing Form 8990)?

Ciao4

I did not because usually they will tell you to contact a tax advisor.

Good luck.

Please post if you find the answer.

I will post if I find the answer.

Michmom23

So, here's what I learned. Energy Transfer does have some regulated utility businesses that are exempted from 163(j) and some that are not. Clear as mud.

Vaughn20082012

I have a zero amount in Box 13 code K on form 1065 from energy transfer. Am I right in thinking that I don't need to fill out form 8990 for a zero amount?