Does anyone know what are the requirements (if any) if one only holds PE stocks, such as FIG and BX, at 2008 year end? Someone told me one has to report the holdings, even if one has no realized gains or losses on these stocks.
Pretend like you don’t know that…sorta like the current head of the IRS pretended like he didn’t know he was supposed to pay taxes on income he made while self-employed.
It appears that FIG and BX are simply equity holdings. If there was not realized gains/losses, then one should not have to report any unrealized activity or holdings on the tax return. Holdings that need to be reported regardless are future contracts in which unrealized gains/losses are marked to market at year end on form 6781 per Section 1256 Contracts. Please double check this to be certain, but I do not think that you need to report the unrealized activity on the Schedule D. http://www.irs.gov/pub/irs-pdf/p550.pdf
I thought so too, but my friend insists that there is a requirement, since he filed it for 2007, and that these PE firms will send you a K-1 return to be filed along with your federal return. Want to find out if this is indeed true or if anyone here is aware of this.
If a K1 is sent, that is a different story. I have little knowledge of K1s. Did you get a 1099 for these holdings? If so, then I do not believe a K1 will arrive.
Did’nt receive a K-1, yet. Got a form for the dividends I received on these stocks.
sid3699 Wrote: ------------------------------------------------------- > Did’nt receive a K-1, yet. Got a form for the > dividends I received on these stocks. From Blackstone’s website: Q. Will every investor receive a K-1 regardless of the amount of time they held their units? A. Yes, regardless of how long the holding period, each unit holder will receive a K-1 reflecting its share of profit. And the link from Blackstone’s website to their Tax Support page: https://www.taxpackagesupport.com/(S(skcr0gn24svgcs45nd1f2cnm))/logon.aspx?database=bl08plus
is that for a holder of the stock or a holder of one of their funds (an LP)? If you are an LP in a Blackstone PE Fund you will receive a K-1. If you are a shareholder in the company and own BX there should be no reason for you to receive something like this…report it like any other stock you hold.
tvPM Wrote: ------------------------------------------------------- > is that for a holder of the stock or a holder of > one of their funds (an LP)? If you are an LP in a > Blackstone PE Fund you will receive a K-1. If you > are a shareholder in the company and own BX there > should be no reason for you to receive something > like this…report it like any other stock you > hold. The information I posted was from their common shareholder FAQ.
tvPM Wrote: ------------------------------------------------------- > is that for a holder of the stock or a holder of > one of their funds (an LP)? If you are an LP in a > Blackstone PE Fund you will receive a K-1. If you > are a shareholder in the company and own BX there > should be no reason for you to receive something > like this…report it like any other stock you > hold. This sounds correct.
hmm, BX trades as a partnership, not like many corporations…so maybe in this case you are essentially a partner, and therefore will get earnings passed on to you? Good question. I only have exp with being the LP on the fund level, not owning an exchange traded partnership like this…
Thanks Brian. Have contacted Investor Relations. Will see how that goes. What a pain.