Oil & Gas Royalty Trust
Anyone ever had a client that owned units of BPT?
BP Prudhoe Bay Royalty Trust.
They don't issue a Schedule K-1.
The unit owner gets a 40-page book that explains two different methods of computing the income and deductions, based on quarterly record dates or average daily allocation.
According to the introduction, the Trust's intention is to allocate income and deductions based on record ownership at quarterly record dates. But it goes on to say that "it is unknown whether the Internal Revenue Service will accept such allocation."
I've been doing taxes for over 20 years, and I've seen some d**n strange stuff. But this is pretty far out...
It doesn't really look that complicated for most unit owners. It has a few worksheets where you plug in the number of units you owned, and then you get figures which presumably would appear on Schedule K-1.
I still think it's pretty funny that investors in this thing basically have to construct their own Schedule K-1.
Burton M. Koss
The map is not the territory...
and the instruction book is not the process.
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