0.000000
(NYSE:EPB)
February 26, 2013
JANUARY 2012 TEST K1
1001 LOUISIANA STREET SUITE 1000
HOUSTON, TX 77002
Dear Unitholder:
Enclosed is your El Paso Pipeline Partners, L.P. (EPB or Partnership) tax package for 2012. The
information contained in this package is being provided to you because the Partnership has been notified
either by your broker or the Partnership’s transfer agent that you were an owner of Partnership units during
the 2012 tax year. Accordingly, if the information provided by your broker or the transfer agent is incorrect,
the information being reported to you and the Internal Revenue Service (IRS) will be incorrect. To that end,
it is important that you carefully review the information included in this package and, in particular, the
Transaction Schedule (explained below) to ensure it is consistent with the information sent to you by your
broker or transfer agent for 2012. If you have not received a 2012 brokerage statement reflecting that you
owned Partnership units, please contact EPB’s Tax Package Support (contact information below) so that the
Partnership can update its records.
The information contained in this package is more voluminous than what you may be use to receiving from
your traditional equity investments in corporations. This is largely attributable to the more tax-favorable
structure of EPB as a publicly-traded partnership (PTP) under the U.S. tax laws. As a PTP, the Partnership
generally does not pay taxes like a corporation, thereby allowing for more cash to be distributed to its
unitholders. Such favorable tax treatment creates some additional complexity compared with traditional
investments in a corporation. For example, the Form 1099 issued by corporations merely reports interest
and dividends. Partnerships, however, are required to separately report many different items of income,
gain, loss, deduction and credit on a Schedule K-1. Careful attention to the information contained herein
and, if needed, the assistance of a tax advisor, should allow you to report this information on your tax return
with little difficulty. Also, please note that additional guidance is provided on the EPB Website, which may
be accessed at www.eppipelinepartners.com and clicking K-1 Tax Information.
Specifically, the following documents are being provided in this package:
1. Schedule K-1 and Instructions: The most important document in the Package, the Schedule K-1,
provides your share of the Partnership’s 2012 income, deductions, credits, and related items. The
K-1 information is to be included in your tax return to be filed for the 2012 tax year. Because of
certain reporting limitations on the K-1, the Partnership also provides other important operating
results needed in the preparation of your tax return in the Additional Information Statement
described below. Also note, if applicable, that Box 1 of the Schedule K-1 includes Internal Revenue
Code (Code) Section 743(b) adjustments. The Partnership has made a Code Section 754 election
to adjust the basis of partnership property when property is distributed or when a partnership
interest is transferred (under Code Section 743(b)).
T.E9A021113a-1-1
DPSYS_NEWPAGE
LANKNAME
02/11/2013
FOREIGN PARTNER GENERAL PARTNER
TEST ALL BUCKETS LARGE NEGATIVES
6 LINES NAME ADDRESS
111222333
000000008131
DPBLANKNAME
2. Additional Information Statement: This Statement provides the K-1 box number, the code, the
description, and the dollar amount for those items in box 20 marked in the Schedule K-1 with an
asterisk and/or STMT. More specifically:
•
Box 20 items relate to the following:
State bonus depreciation adjustment
3. State Information: Since the Partnership has operations in various states, you may be required to
file an income tax return with those states. The Partnership is subject to and does pay the Texas
Franchise (Margin) Tax, which is treated as a state income tax for federal income tax purposes.
This State Information is not a tax return document.
4. Transactions Schedule and Sales Worksheet:
These two important schedules contain
your history of EPB units bought or sold by date and number of units, as reported to the
Partnership by your broker or the Partnership’s transfer agent. In addition, if you sold EPB units
during the 2012 tax year, the Sales Worksheet is provided to calculate your gain or loss from the
disposition of Partnership units. The 2012 Sales Worksheet provides specific instructions to
calculate your ordinary and capital gain or loss, as the case may be.
In addition, if you reported
ordinary income from the sale of your units, you will need to file a Code Section 751 Statement; an
example is provided on the Sales Worksheet.
Also included for your assistance in better understanding the tax reporting rules for taxpayers receiving K-1s
are: FAQs and Graphic Guide. The FAQs address general tax-related issues associated with you receiving a
Schedule K-1, rather than a Form 1099. The Graphic Guide links the information reflected on the Schedule
K-1 to the specific tax forms that may be required in the filing of your 2012 federal income tax return.
Finally, you should note that (1) your K-1 reflects certain nonrecourse liabilities of the Partnership being
allocated to you likely resulting in an increase in your tax basis, and (2) the Partnership continues to claim
bonus depreciation in 2012 resulting in an increased allocation of the related depreciation deduction.
Any corrections to this information or any other information reflected in this package must be submitted to
the Partnership by May 1, 2013 in any one of the following ways:
1. Mail to El Paso Pipeline Partners, L.P., Attention: Tax Package Support, P.O. Box 799060, Dallas,
TX 75379-9060;
2. Call Tax Package Support at 1-866-709-8274; or
3. Submit corrections online through the Partnership’s website at www.eppipelinepartners.com. At this
site, click K-1 Tax Information, which takes you to the Partnership’s Tax Reporting Package logon
screen. There you will be able to view your 2012 tax schedules, request changes to incorrect
information, print your tax package, transfer K-1 information to IRS forms, and print blank IRS
forms. Also, please note that for the first time unitholders may elect to receive their K-1 Information
exclusively through the Partnership’s website by clicking the link named "Go Paperless" located on
the registered user’s home page.
Failure to submit corrections by May 1st may require you to include in your federal income tax return
Treasury Form 8082 - "Notice of Inconsistent Treatment or Administrative Adjustment".
Thank you for your investment in EPB.
El Paso Pipeline Partners, L.P.
While EPB invests hundreds of millions of dollars each year to grow the company and operate our assets
safely, we have always taken pride in being prudent with how we spend your money. To that point, we will not
print and mail hard copies of our annual report. Instead, we will publish Chairman and CEO Richard D.
Kinder’s unitholder letter on our web site at www.eppipelinepartners.com. Both the letter and EPB’s Form
10-K will be available online by early March. We hope that the resulting cost savings, along with the benefit of
reducing our impact on the environment, outweighs any inconvenience. Please direct any inquiries to
Investor Relations at (800) 324-2900 or (713) 369-9490.
T.E9A021113a-1-2
651112
Final K-1
2012
Schedule K-1
(Form 1065)
Department of the Treasury
Internal Revenue Service
Part III Partner’s Share of Current Year Income,
Deductions, Credits, and Other Items
For calendar year 2012, or tax
year beginning
, 20
Partner’s Share of Income, Deductions,
a See back of form and separate instructions.
Credits, etc.
Part I
A
Information About the Partnership
Ordinary business income (loss)
2
Net rental real estate income (loss)
3
Other net rental income (loss)
4
Guaranteed payments
5
Interest income
6a
Ordinary dividends
6b
Qualified dividends
15
Credits
16
Foreign transactions
17
Alternative minimum tax (AMT) items
-526
Partnership’s employer identification number
26-0789784
B
1
, 2012
ending
OMB No. 1545-0099
Amended K-1
5
Partnership’s name, address, city, state, and ZIP code
EL PASO PIPELINE PARTNERS LP
1001 LOUISIANA ST
HOUSTON, TX 77002
C
IRS Center where partnership filed return
D
X
0
7
Royalties
8
Net short-term capital gain (loss)
9a
Net long-term capital gain (loss)
9b
Collectibles (28%) gain (loss)
9c
Unrecaptured section 1250 gain
10
Net section 1231 gain (loss)
11
Other income (loss)
OGDEN
Check if this is a publicly traded partnership (PTP)
Part II
E
Information About the Partner
Partner’s identifying number
260-78-9784
F
Partner’s name, address, city, state, and ZIP code
JANUARY 2012 TEST K1
1001 LOUISIANA STREET SUITE 1000
HOUSTON, TX 77002
A
72
B
-1
18
32
G
X
General partner or LLC
member-manager
Limited partner or other LLC
member
H
X
I1
What type of entity is this partner? (see instructions)
I2
If this partner is a retirement plan (IRA/SEP/Keogh/etc.), check here
(see instructions) . . . . . . . . . . . . .
J
Domestic partner
Foreign partner
0.000000
0.000000
0.000000
Loss
Capital
K
%
%
12
Section 179 deduction
13
Other deductions
.
.
.
.
.
.
.
$
Recourse
.
$
.
.
.
.
.
.
2
Distributions
A
2,140
Other information
%
%
18,736
$
Qualified nonrecourse financing
C
20
%
Partner’s share of liabilities at year end:
Nonrecourse
1
19
.
0.000454
0.000454
0.000454
%
A
Individual
Partner’s share of profit, loss, and capital (see instructions):
Beginning
Ending
Profit
Tax-exempt income and
nondeductible expenses
14
A
5
N
1,112
V
-526
Self-employment earnings (loss)
Y*
Beginning capital account .
.
.
Capital contributed during the year
$
Current year increase (decrease)
.
$
.
.
$ (
.
.
$
.
X
GAAP
Tax basis
0
34,900
-490
2,140
32,270
$
Withdrawals & distributions
Ending capital account .
Section 704(b) book
Other (explain)
M
STMT
*See attached statement for additional information.
Partner’s capital account analysis:
)
For IRS Use Only
L
Did the partner contribute property with a built-in gain or loss?
X No
Yes
If “Yes,” attach statement (see instructions)
For Paperwork Reduction Act Notice, see Instructions for Form 1065.
IRS.gov/form1065
Cat. No. 11394R
Schedule K-1 (Form 1065) 2012
Schedule K-1 (Form 1065) 2012
Page
This list identifies the codes used on Schedule K-1 for all partners and provides summarized reporting information for partners who file Form 1040.
For detailed reporting and filing information, see the separate Partner’s Instructions for Schedule K-1 and the instructions for your income tax return.
1. Ordinary business income (loss). Determine whether the income (loss) is
passive or nonpassive and enter on your return as follows.
Report on
See the Partner’s Instructions
Passive loss
Passive income
Schedule E, line 28, column (g)
Nonpassive loss
Schedule E, line 28, column (h)
Nonpassive income
Schedule E, line 28, column (j)
2. Net rental real estate income (loss) See the Partner’s Instructions
3. Other net rental income (loss)
Net income
Schedule E, line 28, column (g)
Net loss
See the Partner’s Instructions
4. Guaranteed payments
Schedule E, line 28, column (j)
5. Interest income
Form 1040, line 8a
6a. Ordinary dividends
Form 1040, line 9a
6b. Qualified dividends
Form 1040, line 9b
Schedule E, line 4
7. Royalties
8. Net short-term capital gain (loss)
Schedule D, line 5
Schedule D, line 12
9a. Net long-term capital gain (loss)
9b. Collectibles (28%) gain (loss)
28% Rate Gain Worksheet, line 4
(Schedule D instructions)
9c. Unrecaptured section 1250 gain
See the Partner’s Instructions
10. Net section 1231 gain (loss)
See the Partner’s Instructions
11. Other income (loss)
Code
A Other portfolio income (loss)
See the Partner’s Instructions
B Involuntary conversions
See the Partner’s Instructions
C Sec. 1256 contracts & straddles
Form 6781, line 1
D Mining exploration costs recapture See Pub. 535
E Cancellation of debt
Form 1040, line 21 or Form 982
F Other income (loss)
See the Partner’s Instructions
12. Section 179 deduction
See the Partner’s Instructions
13. Other deductions
A Cash contributions (50%)
B Cash contributions (30%)
C Noncash contributions (50%)
D Noncash contributions (30%)
See the Partner’s
E Capital gain property to a 50%
Instructions
organization (30%)
F Capital gain property (20%)
G Contributions (100%)
H Investment interest expense
Form 4952, line 1
I Deductions—royalty income
Schedule E, line 19
J Section 59(e)(2) expenditures
See the Partner’s Instructions
K Deductions—portfolio (2% floor)
Schedule A, line 23
L Deductions—portfolio (other)
Schedule A, line 28
M Amounts paid for medical insurance Schedule A, line 1 or Form 1040, line 29
N Educational assistance benefits
See the Partner’s Instructions
O Dependent care benefits
Form 2441, line 12
P Preproductive period expenses
See the Partner’s Instructions
Q Commercial revitalization deduction See Form 8582 instructions
from rental real estate activities
R Pensions and IRAs
See the Partner’s Instructions
S Reforestation expense deduction
See the Partner’s Instructions
T Domestic production activities
See Form 8903 instructions
information
U Qualified production activities income Form 8903, line 7b
V Employer’s Form W-2 wages
Form 8903, line 17
W Other deductions
See the Partner’s Instructions
14. Self-employment earnings (loss)
Note. If you have a section 179 deduction or any partner-level deductions, see the
Partner’s Instructions before completing Schedule SE.
A Net earnings (loss) from
Schedule SE, Section A or B
self-employment
B Gross farming or fishing income
See the Partner’s Instructions
C Gross non-farm income
See the Partner’s Instructions
15. Credits
A Low-income housing credit
(section 42(j)(5)) from pre-2008
buildings
B Low-income housing credit
(other) from pre-2008 buildings
C Low-income housing credit
(section 42(j)(5)) from
See the Partner’s Instructions
post-2007 buildings
D Low-income housing credit
(other) from post-2007
buildings
E Qualified rehabilitation
expenditures (rental real estate)
F Other rental real estate credits
G Other rental credits
H Undistributed capital gains credit
Form 1040, line 71; check box a
I Alcohol and cellulosic biofuel fuels See the Partner's Instructions
credit
}
}
16.
}
Report on
Code
J Work opportunity credit
K Disabled access credit
L Empowerment zone and
renewal community
employment credit
M Credit for increasing research
See the Partner’s Instructions
activities
N Credit for employer social
security and Medicare taxes
O Backup withholding
P Other credits
Foreign transactions
A Name of country or U.S.
possession
B Gross income from all sources
Form 1116, Part I
C Gross income sourced at
partner level
Foreign gross income sourced at partnership level
D Passive category
E General category
Form 1116, Part I
F Other
Deductions allocated and apportioned at partner level
Form 1116, Part I
G Interest expense
H Other
Form 1116, Part I
Deductions allocated and apportioned at partnership level to foreign source
income
I Passive category
J General category
Form 1116, Part I
K Other
Other information
L Total foreign taxes paid
Form 1116, Part II
M Total foreign taxes accrued
Form 1116, Part II
N Reduction in taxes available for credit Form 1116, line 12
Form 8873
O Foreign trading gross receipts
P Extraterritorial income exclusion
Form 8873
Q Other foreign transactions
See the Partner’s Instructions
Alternative minimum tax (AMT) items
A Post-1986 depreciation adjustment
See the Partner’s
B Adjusted gain or loss
C Depletion (other than oil & gas)
Instructions and
D Oil, gas, & geothermal—gross income
the Instructions for
E Oil, gas, & geothermal—deductions
Form 6251
F Other AMT items
Tax-exempt income and nondeductible expenses
A Tax-exempt interest income
Form 1040, line 8b
B Other tax-exempt income
See the Partner’s Instructions
C Nondeductible expenses
See the Partner’s Instructions
Distributions
A Cash and marketable securities
B Distribution subject to section 737
See the Partner’s Instructions
C Other property
Other information
A Investment income
Form 4952, line 4a
B Investment expenses
Form 4952, line 5
Form 4136
C Fuel tax credit information
D Qualified rehabilitation expenditures See the Partner’s Instructions
(other than rental real estate)
E Basis of energy property
See the Partner’s Instructions
F Recapture of low-income housing Form 8611, line 8
credit (section 42(j)(5))
G Recapture of low-income housing Form 8611, line 8
credit (other)
H Recapture of investment credit
See Form 4255
I Recapture of other credits
See the Partner’s Instructions
J Look-back interest—completed
See Form 8697
long-term contracts
K Look-back interest—income forecast See Form 8866
}
}
}
17.
18.
19.
20.
}
}
method
L
Dispositions of property with
section 179 deductions
M Recapture of section 179 deduction
N Interest expense for corporate
partners
O Section 453(l)(3) information
P Section 453A(c) information
Q Section 1260(b) information
R Interest allocable to production
expenditures
S CCF nonqualified withdrawals
T Depletion information—oil and gas
U Amortization of reforestation costs
V Unrelated business taxable income
W Precontribution gain (loss)
X Section 108(i) information
Y Other information
}
See the Partner’s
Instructions
2
2012 SCHEDULE K-1 ADDITIONAL INFORMATION STATEMENT
PARTNER NAME:
JANUARY 2012 TEST K1
PARTNER ACCOUNT NUMBER: MAN 5232013115043
PARTNER FEDERAL ID/ENTITY: 260-78-9784 / Individual
CUSTODIAN FEDERAL ID:
PARTNERSHIP FEDERAL ID:
K-1 CODES
20Y1
20Y2
26-0789784
DESCRIPTION
AMOUNT/SOURCE
Federal Bonus Depreciation Adjustment for Box 1
Gross Receipts
333
5,692
For tax year 2012, the Partnership has elected to take bonus depreciation for qualifying assets placed into service for
federal income tax purposes. However there are certain states (non-conforming states) that do not allow the federal
bonus depreciation adjustment. If you reside in one of the non-conforming states, when preparing your resident state
income tax return you must adjust the amount reported on Box 1 of your Schedule K-1 by the bonus depreciation
adjustment provided in the Schedule K-1 Supplemental Information Box 20. See the FAQs for a listing of the
non-conforming states.
T.E9A021113a-1-5
TRANSACTIONS SCHEDULE
NOTE: THIS TRANSACTIONS SCHEDULE IS NOT PROOF
OF OWNERSHIP NOR SHOULD IT BE CONSTRUED AS
PROOF OF OWNERSHIP IN EL PASO PIPELINE
PARTNERS, L.P.
JANUARY 2012 TEST K1
MAN 5232013115043
260-78-9784 / Individual
PARTNER FEDERAL ID/ENTITY:
PARTNER NAME:
PARTNER ACCOUNT NUMBER:
CUSTODIAN FEDERAL ID:
26-0789784
PARTNERSHIP FEDERAL ID:
TRANSACTION
DESCRIPTION
AC BUY
DATE
1/1/2012
BROKER OR
CERTIFICATE NUMBER
BROKER-MAN
UNITS
1,000.0000
1,000.0000
END OF YEAR UNITS
T.E9A021113a-1-7
2012 STATE INFORMATION
JANUARY 2012 TEST K1
MAN 5232013115043
PARTNER FEDERAL ID/ENTITY:
260-78-9784 / Individual
PARTNER NAME:
PARTNER ACCOUNT NUMBER:
CUSTODIAN FEDERAL ID:
PARTNERSHIP FEDERAL ID:
26-0789784
State Information
State
AL
CO
FL
GA
KS
LA
MS
MT
OK
SC
TN
UT
WY
(1)
NET ORDINARY
INCOME OR LOSS (-)
-79
-58
-2
-35
-10
-37
-11
0
-5
0
0
-9
-83
(2)
PORTFOLIO
DIVIDEND INCOME
(3)
PORTFOLIO
INTEREST INCOME
0
0
0
0
0
0
0
0
0
0
0
0
0
(4)
INVESTMENT
INTEREST EXPENSE
1
1
0
1
0
0
0
0
0
0
0
0
1
T.E9A021113a-1-6
(5)
FOREIGN TAXES
ACCRUED
0
0
0
0
0
0
0
0
0
0
0
0
0
(6)
GROSS RECEIPTS
0
0
0
0
0
0
0
0
0
0
0
0
0
905
674
60
1,245
119
432
395
2
53
4
2
103
954
(7)
STATE INCOME
TAX
0
0
0
0
0
0
0
0
0
0
0
0
0
Supplemental Income and Loss
2012 GRAPHIC GUIDE
2012
Attach to Form 1040, 1040NR, or Form 1041.
▶ Information about Schedule E and its separate instructions is at www.irs.gov/form1040.
▶
Department of the Treasury
Internal Revenue Service (99)
Name(s) shown on return
Part I
OMB No. 1545-0074
(From rental real estate, royalties, partnerships, S corporations, estates, trusts, REMICs, etc.)
Attachment
Sequence No. 13
Your social security number
Income or Loss From Rental Real Estate and Royalties Note. If you are in the business of renting personal property, use
Schedule C or C-EZ (see instructions). If you are an individual, report farm rental income or loss from Form 4835 on page 2, line 40.
A Did you make any payments in 2012 that would require you to file Form(s) 1099? (see instructions)
Yes
No
Schedule
E (Form
2012
Attachment SequenceYes
No. 13 No
Page 2
or will
you 1040)
file required
Forms 1099?
B If “Yes,” did you
Your social security number
shown
on return.
Do not (street,
enter name
andstate,
social security
number if shown on other side.
1a Physical Name(s)
address
of each
property
city,
ZIP code)
A
Caution. The IRS compares amounts reported on your tax return with amounts shown on Schedule(s) K-1.
B
Income or Loss From Partnerships and S Corporations Note. If you report a loss from an at-risk activity for which
C
Part II
is not
at risk,
mustproperty
check the
box in column (e) on line 28 and attach
Form 6198.
Personal
Use See instructions.
2 amount
1b
Type of Property any
For each
rental
realyou
estate
listed
Fair Rental Days
QJV
above, report the number of fair rental and
Days
(from list27below)Are you reporting
any days.
loss not
allowed
in abox
prior year due to the at-risk or basis limitations,
a prior year
personal use
Check
the QJV
A
A not reported on Form 8582), or unreimbursed
unallowed
loss
from
a passive
activity (iftothat
only
if you
meet
the requirements
file loss
as was
a
qualified
joint
venture.
See
instructions.
Yes
No
B
partnership expenses? If you answered “Yes,” see instructions
before completing this section.
B
(c) Check if
(d) Employer
(e) Check if
C
C (b) Enter P for
(a) Name
28
partnership; S
foreign
identification
any amount is
Type of Property:
for S corporation
partnership
number
not at risk
A
1 Single Family Residence
3 Vacation/Short-Term Rental 5 Land
7 Self-Rental
B
2 Multi-Family Residence
4 Commercial
6 Royalties
8 Other (describe)
El Paso
Pipeline Partners, L.P.
Income:
Properties:
A
B
C
C
D
3 Rents received
. . . . . . . . . . . . .
3
Nonpassive Income and Loss
4 Royalties received . . . Passive
4
. . . Income
. . . and
. Loss
. .
(f) Passive loss allowed
(g) Passive income
(h) Nonpassive loss
(i) Section 179 expense
(j) Nonpassive income
Expenses:
from Schedule K–1
deduction from Form 4562
from Schedule K–1
5
Advertising . . (attach
. . Form
. 8582
. . if required)
. . . . . .from
. Schedule
5 K–1
A
6
Auto and travel
(see instructions) . . . . . . .
6
B maintenance . . . . . . . . .
7
Cleaning and
7
8
Commissions.
. . . . . . . . . . . . .
8
C
9
Insurance D
. . . . . . . . . . . . . . .
9
29a professional
Totals
10
Legal and other
fees . . . . . . .
10
Totals
11
Managementbfees
. . . . . . . . . . . .
11
30
Add
columns
(g) and
of line
29a . . . 12. . . . . . . . . . . . . . . . . .
30
12
Mortgage interest
paid
to banks,
etc. (j)
(see
instructions)
)
31
Add
. 13. . . . . . . . . . . . . . . . . .
31 (
13
Other interest.
. . columns
. . . (f),
. (h),
. and
. . (i) .of line
. . 29b
.
14
Repairs. 32
. . Total
. . .partnership
. . . . and
. .S .corporation
. . .
14
income
or (loss). Combine lines 30 and 31. Enter the
32
15
Supplies . . result
. . .here
. and
. .include
. . in
. the
. total
. . on
. line 41
15 below . . . . . . . . . . . . . . .
and
16
Taxes . Part
. . III
. . Income
. . . or
. .Loss
. .From
. . Estates
. .
16 Trusts
(b) Employer
17
Utilities . 33
. . . . . . . . . . . . . . .
17(a) Name
identification number
18
Depreciation expense or depletion . . . . . . .
18
Other (list) A▶
19
19
B
20
Total expenses.
Add lines 5 through 19 . . . . .
20
Income and
Nonpassive Income and Loss
Subtract line 20 from line 3 (rents) Passive
and/or 4 (royalties).
If Loss
21
A
Passive deduction
or loss
(d) Passive income
(e) Deduction or loss
(f) Other income from
result is a (loss), see(c)instructions
to find
outallowed
if you must
from Schedule K–1
Schedule K–1
file Form 6198 . . (attach
. . .Form
. 8582
. . if required)
. . . . .
21 from Schedule K–1
OMB No. 1545-0074
BArental real estate loss after limitation, if any,
Deductible
22SCHEDULE
Interest
and
Ordinary
Dividends
)(
)(
)
(Formon
1040A
or8582
1040)
B (see instructions) . . . . . . .
Form
22 (
Totals
▶ Attach
23a
Total of all 34a
amounts
reported on line 3 for all rental
properties
. or
. 1040.
. .
23a
to Form 1040A
Department of the Treasury
Attachment
▶ Information about Schedule B (Form 1040A or 1040) and its instructions is at www.irs.gov/form1040.
Internal
Revenue
(99)
b Totals
b Total
ofService
all amounts
reported on line 4 for all royalty properties . . . .
23b
Sequence No. 08
Name(s)
shown
35
Addreported
columnson
(d)line
and12
(f)for
of line
34a . . . . . . . . . . . . . . . . 23c
. . . . . . Your
. . social
. .security
. number
35
c Total
ofon
allreturn
amounts
all properties
Addreported
columnson
(c)line
and18
(e)for
of all
lineproperties
34b . . . . . . . . . . . . . . . 23d
. . . . . . . . . . .
36 (
d Total of all 36
amounts
e Total
amounts
linetrust
20If for
allinterest
properties
. Combine
. . lines
. . 35 mortgage
23e 36. Enter
1 Total
Listreported
name
payer.
any
from
a. seller-financed
and the
Part
I of all 37
estateofon
and
income
or is
(loss).
and
the result here Amount
and
buyeramounts
used
property
a personal
include
in thethe
total
on line
41
below
.residence,
. include
. . see
. .instructions
. . . . on
. . back
. . . . and
. . .list
. . . .
37
24
Income. Add positive
shown
onasline
21. Do not
any
losses
. . . . 24
▶
interest
first.
show
thatReal
buyer’s
social
security
number
and total
address
)
Part
IVthislosses
Income
or
Loss
From
Estate
Mortgage
Investment
Conduits
Holder
25Interest
Losses. Add
royalty
from
lineAlso,
21 and
rental
real
estate
losses
from line
22.
Enter
losses
here (REMICs)—Residual
25 (
The amounts reported on your 2012 Federal Schedule K-1 are represented by letters. Follow the arrows for each letter to locate the line on
the appropriate federal form in which to report your federal amounts.
*If the sum of boxes 1, 2, 3, 4, 8, 9a, 10, 11, 12, and 13J on your Schedule K-1 result in a negative number (a passive activity loss) do
not report any of the amounts from boxes 1, 2, 3, 4, 8, 9a, 9b, 9c, 10, 11, 12, 13J, 15, and 17 on your 2012 federal tax return unless you
sold all of your partnership units prior to January 1, 2013. If the sum of boxes 1, 2, 3, 4, 8, 9a, 10, 11, 12, and 13J on your Schedule K-1
result in a positive number, or if you sold units in the current year, see page 4 of the enclosed partner’s instructions for Schedule K-1 for
instructions regarding Publicly Traded Partnerships. You may also want to consult your Tax Advisor.
B
(c) Excess inclusion from
Employer
(d)here.
Taxable income (net loss)
(e) Income from
Total rental38real estate(a)
and
royalty income(b)or
(loss). identification
Combine lines 24
and 25. Enter
Name
Schedules
Q, linethe
2c result from
number
Schedules Q, line 1b
Schedules Q, line 3b
instructions)
If Parts II, III, IV, and line 40 on page 2 do not apply to you, also enter this (see
amount
on Form 1040, line
(See instructions
17,and
or Form
26
on back
the 1040NR, line 18. Otherwise, include this amount in the total on line 41 on page 2 . . . .
39
Combine
columns
(d)tax
and
(e) only.
Enter the result here and
in the total on line 41
belowE (Form
391040) 2012
Forinstructions
PaperworkforReduction
Act Notice,
see your
return
instructions.
Schedule
Cat.include
No. 11344L
Department of the Treasury
Internal Revenue Service
1
. . . . .
Total income or (loss). Combine lines 26, 32, 37, 39, and 40. Enter the result here and on Form 1040, line 17, or Form 1040NR, line 18 ▶
41
Note. If you
received a Form 42
1099-INT, Form
1099-OID, or
substitute
statement from
a brokerage firm, 43
list the firm’s
name as the
2
payer and enter
3
the total interest
shown on that
form.
4
Part I
Partnership’s employer identification number
B
Partnership’s name, address, city, state, and ZIP code
C
D
42
G
2
H
3
Schedule E (Form 1040) 2012
4
Amount
Note. If you
received a Form
1099-DIV or
substitute
statement from
a brokerage firm,
(99)
list the firm’s Department of the Treasury—Internal Revenue Service
name as the U.S. Individual Income Tax Return
OMB No. 1545-0074 IRS Use Only—Do not write or staple in this space.
payer and enter
See separate instructions.
For the
year
Jan.
1–Dec.
31,
2012,
or
other
tax
year
beginning
, 2012, ending
, 20
the ordinary
Add the amounts Last
on name
line 5. Enter the total here and on Form 1040A, or Form Your social security number
Your dividends
first name and
initial 6
shown
6
1040, line 9a . . . . . . . . . . . . . . . . . . . . . . ▶
on that form.
K
(See
instructions on
Filing
Status
back.)
Check only one
box.
Apt. no.
L
c
Spouse
.
Dependents:
(1) First name
.
.
.
.
.
.
.
.
.
.
.
(2) Dependent’s
social security number
Last name
.
.
.
.
.
.
.
.
}
.
.
Boxes
checked
B (Form
1040A or 1040) 2012
. Schedule
.
.
.
.
.
(4) ✓ if child under age 17
qualifying for child tax credit
(see instructions)
(3) Dependent’s
relationship to you
If you did not
get a W-2,
see instructions.
Enclose, but do
not attach, any
payment. Also,
please use
Form 1040-V.
Adjusted
Gross
Income
Other net rental income (loss)
4
Guaranteed payments
5
Interest income
6a
Ordinary dividends
6b
Qualified dividends
15
16
Part I
Foreign transactions
B
D
Royalties
8
Net short-term capital gain (loss)
9a
Net long-term capital gain (loss)
9b
Collectibles (28%) gain (loss)
9c
Unrecaptured section 1250 gain
17
A
B
Alternative Minimum Taxable Income (See instructions for how to complete each line.)
1 If filing Schedule A (Form 1040), enter the amount from Form 1040, line 41, and go to line 2. Otherwise,
enter the amount from Form 1040, line 38, and go to line 7. (If less than zero, enter as a negative amount.)
Credits
C
7
2012
Attachment
Sequence No. 32
Your social security number
Name(s) shown on Form 1040 or Form 1040NR
Alternative minimum tax (AMT) items
G
H
1
2 Medical and dental. Enter the smaller of Schedule A (Form 1040), line 4, or 2.5% (.025) of Form 1040, line
38. If zero or less, enter -0- . . . . . . . . . . . . . . . . . . . . . . . . .
3 Taxes from Schedule A (Form 1040), line 9 . . . . . . . . . . . . . . . . . . . .
4 Enter the home mortgage interest adjustment, if any, from line 6 of the worksheet in the instructions for this line
5 Miscellaneous deductions from Schedule A (Form 1040), line 27. . . . . . . . . . . . . .
6 Skip this line. It is reserved for future use . . . . . . . . . . . . . . . . . . . . .
7 Tax refund from Form 1040, line 10 or line 21 . . . . . . . . . . . . . . . . . . .
8 Investment interest expense (difference between regular tax and AMT). . . . . . . . . . . .
9 Depletion (difference between regular tax and AMT) . . . . . . . . . . . . . . . . .
10 Net operating loss deduction from Form 1040, line 21. Enter as a positive amount . . . . . . . .
11 Alternative tax net operating loss deduction . . . . . . . . . . . . . . . . . . . .
12 Interest from specified private activity bonds exempt from the regular tax
. . . . . . . . . .
13 Qualified small business stock (7% of gain excluded under section 1202) . . . . . . . . . . .
14 Exercise of incentive stock options (excess of AMT income over regular tax income) . . . . . . . .
15 Estates and trusts (amount from Schedule K-1 (Form 1041), box 12, code A)
. . . . . . . . .
16 Electing large partnerships (amount from Schedule K-1 (Form 1065-B), box 6) . . . . . . . . .
17 Disposition of property (difference between AMT and regular tax gain or loss) . . . . . . . . .
18 Depreciation on assets placed in service after 1986 (difference between regular tax and AMT) . . . .
19 Passive activities (difference between AMT and regular tax income or loss) . . . . . . . . . .
20 Loss limitations (difference between AMT and regular tax income or loss) . . . . . . . . . . .
21 Circulation costs (difference between regular tax and AMT) . . . . . . . . . . . . . . .
22 Long-term contracts (difference between AMT and regular tax income) . . . . . . . . . . .
23 Mining costs (difference between regular tax and AMT) . . . . . . . . . . . . . . . .
24 Research and experimental costs (difference between regular tax and AMT) . . . . . . . . . .
25 Income from certain installment sales before January 1, 1987 . . . . . . . . . . . . . .
26 Intangible drilling costs preference . . . . . . . . . . . . . . . . . . . . . . .
27 Other adjustments, including income-based related adjustments . . . . . . . . . . . . .
2
3
4
5
6
7 (
8
9
10
11 (
12
13
14
15
16
17
18
19
20
21
22
23
24
25 (
26
27
28 Alternative minimum taxable income. Combine lines 1 through 27. (If married filing separately, see
instructions.)
. . . . . . . . . . . . . . . . . . . . . . . . . . . . .
28
)
A
E
)
J
M
G
H
)
Limited partner or other LLC
member
Domestic partner
Foreign partner
E
18
12
29 Exemption. See instructions .
Tax-exempt income and
nondeductible expenses
13
20
%
Capital
%
%
A
.
.
.
.
.
$
$
.
.
14
$
.
.
.
Distributions
Other information
I
$
.
$
.
.
$ (
.
.
$
Current year increase (decrease)
Withdrawals & distributions
Ending capital account .
.
Tax basis
GAAP
.
.
.
.
.
.
.
.
.
.
.
.
4952
)
Section 704(b) book
.
29
.
30
}
.
Total Investment Interest Expense
35 AMT. Subtract line 34 from line 33. If zero or less, enter -0-. Enter here and on Form 1040, line 45 .
Self-employment earnings (loss)
Part II
.
.
.
.
.
.
31
OMB No. 1545-0191
32
.
2012
.
.
.
.
.
.
Cat. No. 11394R
1
2
3
.
.
.
4c
Form
6251 (2012)
I
.
4f
. . . .
income (see
. . . .
. . . .
. . . .
. . . .
4g
4h
5
6
Investment Interest Expense Deduction
For Paperwork Reduction Act Notice, see page 4.
IRS.gov/form1065
35
.
.
.
Disallowed investment interest expense to be carried forward to 2013. Subtract line 6 from
line 3. If zero or less, enter -0- . . . . . . . . . . . . . . . . . . . . . .
Investment interest expense deduction. Enter the smaller of line 3 or 6. See instructions . .
8
Yes
No
If “Yes,” attach statement (see instructions)
.
.
.
Net Investment Income
Part III
7
.
.
.
Cat.
. .No. .13600G
. .
Gross income from property held for investment (excluding any net
gain from the disposition of property held for investment) . . .
4a
b Qualified dividends included on line 4a . . . . . . . . .
4b
c Subtract line 4b from line 4a
. . . . . . . . . . . . . . . . . .
d Net gain from the disposition of property held for investment . .
4d
e Enter the smaller of line 4d or your net capital gain from the
disposition of property held for investment (see instructions)
.
4e
f Subtract line 4e from line 4d
. . . . . . . . . . . . . . . . . .
g Enter the amount from lines 4b and 4e that you elect to include in investment
instructions) . . . . . . . . . . . . . . . . . . . . . . . .
h Investment income. Add lines 4c, 4f, and 4g . . . . . . . . . . . . .
5
Investment expenses (see instructions) . . . . . . . . . . . . . . .
Net investment income. Subtract line 5 from line 4h. If zero or less, enter -0- . .
6
Did the partner contribute property with a built-in gain or loss?
For Paperwork Reduction Act Notice, see Instructions for Form 1065.
.
. . . . . . . . . . .
Investment Interest. Expense
Deduction
Act Notice,
seeor
your
tax return
instructions.
1For Paperwork
InvestmentReduction
interest expense
paid
accrued
in 2012
(see instructions)
2
Disallowed investment interest expense from 2011 Form 4952, line 7 .
3
Total investment interest expense. Add lines 1 and 2 . . . . . .
$
Other (explain)
.
32 Alternative minimum tax foreign tax credit (see instructions) .
Part I
*See attached statement for additional information.
.
.
4a
Partner’s capital account analysis:
.
.
• All others: If line 30 is $175,000 or less ($87,500 or less if married filing separately),
multiply line 30 by 26% (.26). Otherwise, multiply line 30 by 28% (.28) and subtract
$3,500 ($1,750 if married filing separately) from the result.
Partner’s share of liabilities at year end:
.
.
Other deductions
%
.
.
▶
%
.
.
Information
about
4952
33 Tentative minimum tax. Subtract
line 32
fromForm
line 31
. and
. its
. instructions
. . . . .is at
. www.irs.gov/form4952.
. . . . . . . .
33
Attachment
Department of the Treasury
▶ Attach to your tax return.
Sequence No. 51
Internal Revenue Service (99)
34 Tax from Form 1040, line 44 (minus any tax from Form 4972 and any foreign tax credit from Form
Name(s) shown
return
1040,online
47). If you used Schedule J to figure your tax, the amount from line 44 of Form 1040 must be Identifying number
refigured without using Schedule J (see instructions) . . . . . . . . . . . . . . . . .
34
%
.
.
Form
Loss
Recourse
.
Section 179 deduction
Profit
Qualified nonrecourse financing
.
30 Subtract line 29 from line 28. If more than zero, go to line 31. If zero or less, enter -0- here and on lines 31,
33, and 35, and go to line 34 . . . . . . . . . . . . . . . . . . . . . . . . .
31 • If you are filing Form 2555 or 2555-EZ, see instructions for the amount to enter.
• If you reported capital gain distributions directly on Form 1040, line 13; you reported qualified dividends
on Form 1040, line 9b; or you had a gain on both lines 15 and 16 of Schedule D (Form 1040) (as
refigured for the AMT, if necessary), complete Part III on the back and enter the amount from line 54 here.
. . .
Other income (loss)
19
.
Partner’s share of profit, loss, and capital (see instructions):
Beginning
Ending
Capital contributed during the year
M
11
Net section 1231 gain (loss)
7
8
Form 4952 (2012)
Cat. No. 13177Y
Schedule K-1 (Form 1065) 2012
Dependents on 6c
not entered above
d
Attach Form(s)
W-2 here. Also
attach Forms
W-2G and
1099-R if tax
was withheld.
on 6a and 6b
No. of children
on 6c who:
• lived with you
• did not live with
you due to divorce
or separation
(see instructions)
If more than four
dependents, see
instructions and
check here ▶
Income
General partner or LLC
member-manager
Check here if you, or your spouse if filing
b
3
Partner’s name, address, city, state, and ZIP code
Beginning capital account .
Make sure the SSN(s) above
If “Yes,” are you required to file Form TD F 90-22.1 to report that financial interestjointly,
or signature
want $3 to go to this fund. Checking
Foreign postal code
Foreign province/state/county
a box below will not
authority? See Form TD F 90-22.1 and its instructions for filing requirements and exceptions
to change your tax or
refund.
Spouse
those requirements . . . . . . . . . . . . . . . . . . . . . . . . . You
.
1 b Single
4 name
Head
household
(with
qualifying
person).
If you are required to file Form TD F 90-22.1, enter the
ofofthe
foreign
country
where
the(See instructions.) If
the qualifying person is a child but not your dependent, enter this
Married
filing
jointly (even
if only ▶
one had income)
2
financial
account
is located
▶
child’s
here. of,
3 8 Married
separately.
Enter spouse’s
SSN above
During filing
2012,
did you receive
a distribution
from, or were you
thename
grantor
or transferor to, a
▶
and
full name
here.
5
Qualifying
widow(er)
with dependent
foreign
trust?
If “Yes,”
you may have to file Form 3520.
See
instructions
on back
. . . child
. . .
Cat. No.box
17146N
6a
Yourself.
If someone
as a dependent, do not check
6a .
For Paperwork Reduction
Act Notice,
see your can
tax claim
returnyou
instructions.
Exemptions
Net rental real estate income (loss)
A
Partner’s identifying number
Nonrecourse
▲ a financial
At any time during 2012, did you have a financial interest in or signature authority over
and on line 6c are correct.
Part III
account (such as a bank account, securities account, or brokerage account) located in a foreign
City, town
or post office, state, and ZIP code. If you have a foreign address, also complete spaces below (see instructions).
Presidential Election Campaign
Foreign
country? See instructions . . . . . . . . . . . . . . . . . . . . . . . .
Accounts
and Trusts
Information About the Partner
If this partner is a retirement plan (IRA/SEP/Keogh/etc.), check here
(see instructions) . . . . . . . . . . . . .
Note. If line 6 is over $1,500, you must complete Part III.
Last name
If a joint return, spouse’s first name and initial
Spouse’s social security number
You must complete this part if you (a) had over $1,500 of taxable interest or ordinary dividends; (b) had a
Yes No
foreign account; or (c) received a distribution from, or were a grantor of, or a transferor to, a foreign trust.
Foreign country name
Check if this is a publicly traded partnership (PTP)
I2
2012
7a
IRS Center where partnership filed return
What type of entity is this partner? (see instructions)
5
Home address (number and street). If you have a P.O. box, see instructions.
EL PASO PIPELINE PARTNERS, L.P.
1001 Louisiana St
Houston, TX 77002
I1
J
C
(See instructions
on back and the
instructions for
Form 1040A, or
Form 1040,
line 9a.)
Form
E
2
10
Ordinary
Dividends
1040
26-0789784
Part II
Ordinary business income (loss)
OMB No. 1545-0074
about Form 6251 and its separate instructions is at www.irs.gov/form6251.
▶ Attach to Form 1040 or Form 1040NR.
Part II Alternative Minimum Tax (AMT)
Reconciliation of farming and fishing income. Enter your gross
farming and fishing income reported on Form 4835, line 7; Schedule K-1
(Form 1065), box 14, code B; Schedule K-1 (Form 1120S), box 17, code
U; and Schedule K-1 (Form 1041), box 14, code F (see instructions) . .
Reconciliation for real estate professionals. If you were a real estate
professional (see instructions), enter the net income or (loss) you reported
Add the amounts
on line
1 . 1040NR
. . . from
. . all.rental
. .real. estate
. . activities
. . . . . .
anywhere
on Form 1040
or Form
inExcludable
which you materially
under
passive
activitybonds
loss rules
. . after
43 1989.
interest participated
on series EE
andthe
I U.S.
savings
issued
Attach Form 8815 . . . . . . . . . . . . . . . . . . . . .
Subtract line 3 from line 2. Enter the result here and on Form 1040A, or Form
1040, line 8a . . . . . . . . . . . . . . . . . . . . . . ▶
Note. If line 4 is over $1,500, you must complete Part III.
List name of payer ▶
5
Part II
Information About the Partnership
A
1
, 2012
, 20
Partner’s Share of Income, Deductions,
▶ See back of form and separate instructions.
Credits, etc.
F
40
41
year beginning
OMB No. 1545-0099
Amended K-1
Alternative Minimum Tax—Individuals
▶ Information
Department of the Treasury
Internal Revenue Service (99)
Part III Partner’s Share of Current Year Income,
Deductions, Credits, and Other Items
For calendar year 2012, or tax
ending
26
Form 1040A, or Part V
Summary
Form 1040,
40
Net farm rental income or (loss) from Form 4835. Also, complete line 42 below .
line 8a.)
Final K-1
2012
Schedule K-1
(Form 1065)
2012
)
6251
Form
651112
For IRS Use Only
SCHEDULE E
(Form 1040)
7
8a
b
9a
b
Total number of exemptions claimed
.
.
.
.
.
.
.
.
.
.
.
.
.
.
.
Wages, salaries, tips, etc. Attach Form(s) W-2
.
Taxable interest. Attach Schedule B if required .
Tax-exempt interest. Do not include on line 8a .
Ordinary dividends. Attach Schedule B if required
.
.
.
.
.
.
.
.
.
.
.
.
.
.
8b
. .
.
.
.
.
.
.
.
.
.
.
.
.
.
.
8a
.
.
D
.
.
.
.
.
9a
.
.
.
.
10
11
Qualified dividends . . . . . . . . . . .
9b
Taxable refunds, credits, or offsets of state and local income taxes
Alimony received . . . . . . . . . . . . . . .
.
.
.
.
10
11
12
13
14
Business income or (loss). Attach Schedule C or C-EZ . . . . . . . . .
Capital gain or (loss). Attach Schedule D if required. If not required, check here ▶
Other gains or (losses). Attach Form 4797 . . . . . . . . . . . . .
.
12
13
14
15a
16a
17
IRA distributions .
15a
b Taxable amount
. . .
Pensions and annuities 16a
b Taxable amount
. . .
Rental real estate, royalties, partnerships, S corporations, trusts, etc. Attach Schedule E
15b
16b
17
18
19
20a
Farm income or (loss). Attach Schedule F .
Unemployment compensation . . . .
Social security benefits 20a
18
19
20b
21
22
Other income. List type and amount
Combine the amounts in the far right column for lines 7 through 21. This is your total income
.
.
.
.
.
.
.
.
23
Reserved
24
Certain business expenses of reservists, performing artists, and
fee-basis government officials. Attach Form 2106 or 2106-EZ
25
26
27
Health savings account deduction. Attach Form 8889
Moving expenses. Attach Form 3903 . . . . .
.
.
.
.
.
.
.
.
.
.
.
.
28
Deductible part of self-employment tax. Attach Schedule SE .
Self-employed SEP, SIMPLE, and qualified plans
. .
27
28
29
30
31a
32
33
Self-employed health insurance deduction
Penalty on early withdrawal of savings . .
.
.
.
.
.
.
.
.
Alimony paid b Recipient’s SSN
IRA deduction . . . . . .
Student loan interest deduction .
36
37
.
.
.
.
.
.
.
.
.
.
.
.
.
.
.
.
.
▶
Form
4797
Department of the Treasury
Internal Revenue Service
Sales of Business Property
OMB No. 1545-0184
2012
(Also Involuntary Conversions and Recapture Amounts
Under Sections 179 and 280F(b)(2))
▶
▶ Attach to your tax return.
Information about Form 4797 and its separate instructions is at www.irs.gov/form4797.
1
Enter the gross proceeds from sales or exchanges reported to you for 2012 on Form(s) 1099-B or 1099-S (or
substitute statement) that you are including on line 2, 10, or 20 (see instructions) . . . . . . . .
1
Sales or Exchanges of Property Used in a Trade or Business and Involuntary Conversions From Other
Than Casualty or Theft—Most Property Held More Than 1 Year (see instructions)
(a) Description
of property
2
27
Identifying number
Name(s) shown on return
Part I
Attachment
Sequence No.
(b) Date acquired
(mo., day, yr.)
(c) Date sold
(mo., day, yr.)
(e) Depreciation
allowed or
allowable since
acquisition
(d) Gross
sales price
(f) Cost or other
basis, plus
improvements and
expense of sale
El Paso Pipeline Partners, L.P. (26-0789784)
(g) Gain or (loss)
Subtract (f) from the
sum of (d) and (e)
E
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22
23
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25
26
Reserved
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b Taxable amount
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35
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Add numbers on
lines above ▶
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31a
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Domestic production activities deduction. Attach Form 8903
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Add lines 23 through 35 . . . . . . . . . . . . .
Subtract line 36 from line 22. This is your adjusted gross income
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El Paso Pipeline.indd 1
For Disclosure, Privacy Act, and Paperwork Reduction Act Notice, see separate instructions.
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36
37
Cat. No. 11320B
Form
1040
(2012)
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5
Gain, if any, from Form 4684, line 39 . . . . . . . . . . .
Section 1231 gain from installment sales from Form 6252, line 26 or 37 .
Section 1231 gain or (loss) from like-kind exchanges from Form 8824 .
6
7
Gain, if any, from line 32, from other than casualty or theft. . . . . . . . . . . . . . . . . .
Combine lines 2 through 6. Enter the gain or (loss) here and on the appropriate line as follows: . . . . . . .
Partnerships (except electing large partnerships) and S corporations. Report the gain or (loss) following the
instructions for Form 1065, Schedule K, line 10, or Form 1120S, Schedule K, line 9. Skip lines 8, 9, 11, and 12 below.
Individuals, partners, S corporation shareholders, and all others. If line 7 is zero or a loss, enter the amount from
line 7 on line 11 below and skip lines 8 and 9. If line 7 is a gain and you did not have any prior year section 1231
losses, or they were recaptured in an earlier year, enter the gain from line 7 as a long-term capital gain on the
Schedule D filed with your return and skip lines 8, 9, 11, and 12 below.
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7
8
Nonrecaptured net section 1231 losses from prior years (see instructions) .
8
9
Subtract line 8 from line 7. If zero or less, enter -0-. If line 9 is zero, enter the gain from line 7 on line 12 below. If line
9 is more than zero, enter the amount from line 8 on line 12 below and enter the gain from line 9 as a long-term
capital gain on the Schedule D filed with your return (see instructions) . . . . . . . . . . . . . .
Part II
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Ordinary Gains and Losses (see instructions)
Ordinary gains and losses not included on lines 11 through 16 (include property held 1 year or less):
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2/5/13 8:33 AM
TX-48981
FREQUENTLY ASKED QUESTIONS
Q:
Are the cash distributions I received from the Partnership taxable?
A:
In general, cash distributions received from the Partnership are not taxable. You are required to report in your tax
return only those items of income, gain, loss, deduction or tax credit as reflected on your Schedule K-1.
Q: Why is the amount of cash I received different than my allocable share of Partnership income, gain,
loss, deduction or credit?
A: The Partnership distributes available cash determined by the Partnership agreement. The calculation of cash
available for distribution differs from the calculation of taxable income to be reported to the partners. For example,
depreciation is an expense that reduces taxable income reported to the partners but does not reduce cash
available for distribution.
Q:
If I sell my Partnership units, how is my tax basis determined for computing gain or loss?
A: Your tax basis is the original amount paid for the Partnership units, adjusted as follows:
• Increased by the cumulative amounts of income and gain reported to you on Schedule K-1;
• Reduced by the cumulative amounts of loss, deduction and credit reported to you on Schedule K-1;
• Increased by the non recourse debt allocated to you on the Schedule K-1;
• Reduced, but not below zero, by the cumulative amounts of cash distributions received from the
Partnership.
Q:
Does the Schedule K-1 show my tax basis in Partnership units?
A: No. However, the Schedule K-1 Box L – Partner’s Capital Account Analysis, may provide an approximation of your
ending tax basis for all units owned at December 31. The amount reflected in the Ending Capital Account includes
your original cost of units, as reported to the Partnership by your broker, and other adjustments affecting tax
basis. However, brokers do not always report original cost to the Partnership, or the original cost reported may be
incorrect. When brokers do not report original cost to the Partnership, the low closing price for the month in which
you purchased units is assumed to be the cost. This assumption, or incorrect reporting by the broker, can cause
this year end amount to be different than your actual tax basis at December 31. The current year increase(decrease)
amount for Box L is computed as follows: sum of boxes 1, 2, 3, 4, 5, 6a, 7, 8, 9, 10, 11, 12, and 18C.
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 was a sale of the partner’s allocable share of each of the
Partnership’s assets. Gain on the sale of assets from which depreciation deduction has been taken is treated
as ordinary income rather than capital gain. The ordinary income on sale of units represents the depreciation
deduction previously allocated to you.
Q: If my Schedule K-1 reports a passive activity loss from Partnership operations, does this mean the
Partnership was not profitable?
A: No. The net income of the Partnership for 2012 before certain items was $608 million and $589 million, including
certain items. Any operating loss reported to partners for tax purposes is due principally to tax depreciation
expense in excess of GAAP depreciation expense.
Q: What is bonus depreciation?
A:
Favorable federal tax legislation passed in 2010 allows the Partnership to accelerate depreciation for certain
qualifying property placed in service prior to January 1, 2012 resulting in larger tax deductions for the 2012 tax year.
Such benefit, however, has not been adopted by all states; accordingly, this tax package may include information
for both conforming and non-conforming states.
Q: Which states are non-conforming?
A:
The following states are non-conforming: Arizona, Arkansas, California, District of Columbia, Florida, Georgia,
Hawaii, Idaho, Illinois, Indiana, Iowa, Kentucky, Maine, Maryland, Massachusetts, Michigan, Minnesota, Mississippi,
New Hampshire, New Jersey, New York, North Carolina, Ohio, Oregon, Pennsylvania, Rhode Island, South Carolina,
Tennessee, Texas, Vermont, Virginia, Wisconsin.
Q: What additional forms may be required for filing of my tax return?
Form 1040 US Individual Income Tax Return
Form 1040 Schedule B - Interest and Ordinary Dividends
Form 1040 Schedule E - Supplemental Income and Loss
Form 4797 Sales of Business Property
Form 4952 Investment Interest Expense Deduction
Form 6251 Alternative Minimum Tax – Individuals
Form 8082 Notice of Inconsistent Treatment or Administrative Adjustment Request
Q: What is a nonrecourse liability and how does it affect my tax basis in the Partnership?
A: A partnership liability is treated as a nonrecourse liability to the extent that no partner or related person bears the
economic risk of loss for such liability. A partner’s tax basis in the partnership includes its share of the partnership’s
nonrecourse liabilities.
A:
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