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Re: UBTI Calculations (line 20 v) wrong for some MLP's ?Thanks.publication 598(Jan 2015) page 9 confirms that interest and Royalties are excluxed from the definition of UBTI. You are correct. Page 13 of 598 indicates that the allowable deductions for members of a partnership (IRA) must be figured as if the IRA had conducted the business activity in it's own capacity as a corporation or a trust. (IRA is a trust). 2015 Partners instructions for Schedule K-1 line 13J page 10 references 26 usc 59e(1)&(2) but provides that you may deduct these expenditures in full in the current year.Per VNR's K-1 you are to deduct this amount from line 1. 2015 Partners instructions for Schedule K-1 20T(1) Depletion Information on p15 states "This is your share of gross income from the property,share of production for the tax year etc,; needed to figure your depletion deduction for oil and gas wells.The partnership should also allocate to you a share of the adjusted basis of each oil or gas property. See pub 535 for details on how to figure your depletion allowance.Page 35 of Publication 535 states that I must be an independent producer or a royalty owner to take a depletion allowance. Publication 535 is complicated so I will need help.But I have been allocated Royalties on line 12 so am I a Royalty owner. Answer has to be yes otherwise why do I get Royalty income .So I conclude that I am entitled to a depletion allowance . Line 20T(1) states "Total Sustained - assumed Allowable Depletion. Per VNR's instructions on their K-1 this figure (depletion allowance) is to be deducted from line 1. I've eaten my fair share of humble pie on this board but don't know of any other way to find out answers I'm seeking. I thank those that correct my mistakes.I know it takes time you don't have to give me. |
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