I got stopped out of an MLP yesterday that I owned units of. I would like to buy it back today. If I do that, how will the K1 forms be sent out at the end of the year. Specifically — will I get one K1 form showing it was closed out, and a second K1 covering my re-purchase?
I believe the IRS prefers to see this on a single K-1, but the company’s software may be set up to generate two in this situation, and the IRS won’t object if that’s the case. If it’s important to know which will happen you’ll need to contact investor relations at the company.