Publicly traded partnership (PTP) income is reported to investors on a Schedule K-1. Individual investors complete Form 8582 to reconcile income and passive activity losses from these activities.
If an individual invests in a publicly traded partnership (PTP) which reports their allocable share of the income. The individual uses this information to complete their own Form 1040 tax return.
Investors in a PTP will receive a Schedule K-1 each year. The investor uses this information to complete their own tax returns. When an investor sells their PTP units, the gain/loss on sale must be recorded and certain adjustments are generally required.
If an individual taxpayer receives qualified business income (QBI) during the tax year, the individual can include Form 8995 to calculate their QBI deduction. Investments in PTPs may pass-through QBI information for the taxpayer.
