PTPs, MLPs AND THEIR pESKY k-1S - SACEAsacea.org/education/PTPs.pdf · A publicly traded partnership is any ... partnerships. P a r t n e r s h i p C o r p o r a t i o n PTP/MPL Benefits

And their “pesky” K-1s

George Harris, EA2101 N Country Club, Ste 105

Tucson, AZ 85716520-320-1041

[email protected]

07/22/14

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A publicly traded partnership is any partnership an interest in which is regularly traded on an established securities market regardless of the number of its partners …..… Withholding for Foreign Partners …

A Master Limited Partnership (MLP) is a limited partnership (or LLC) that trades on a U.S. public exchange or over-the-counter market.

It is subject to the same tax rules and reporting requirements as limited partnerships.

Partnership

Corporation

PTP/MPL BenefitsGP provide professional management

LP (Unit holders) are investorsLP have liability protection

Tax Benefits of a PartnershipLP taxed on Income via K1

No corporate taxes No double taxation

Cash distributions are return of capitalAvoids shareholder limitations of S-Corp

Units are traded like stockInvestments are Liquid

Attractive to businesses needing to raise large amounts of capital.

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Corporation MLP

Net Income $ 100.00 $ 100.00

- IRS 39.5% 39.50 0

- State 5% 5.00 0

Income after tax $ 55.50 $ 100.00

- IRS 15% 8.33 25% 25.00

- State 5% 2.77 5% 5.00

Net $ after tax $ 44.40 $ 70.00

§7704(b) Defines PTP as any partnership in which (1) the interests in that partnership are traded on an established securities market or (2) are readily tradable on a secondary market.

§7704(a)A PTP is taxed as a corporation.

§7704(c) Provides an exception: A PTP may be taxed as a partnership if more than 90% of its gross income consists of “qualifying income”.

Investment Income Rental & Real Estate Commodity Investments Income from Natural Resources Activities:◦ Oil, gas & petroleum◦ Coal ◦ Timber◦ Any depletable resources §613◦ 2008 expanded to include “bio” & other alternative

fuels

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A Master Limited Partnership (MLP) is a subset of PTPs that trades on a U.S. public exchange or over-the-counter market.

It earns over 90% of its income from certain “qualifying” sources as defined in IRS §7704

It is therefore allowed the same tax rules and reporting requirements as limited partnerships.

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One or More General Partners (GPs)◦ GP Manages Partnership◦ Generally has ~2% ownership◦ Many have Incentive Distribution Rights (IDRs)

Many Limited Partners (LPs)/Unit-holders◦ LPs own Publicly traded units◦ Provide Capital◦ No role in operations◦ K1reports pro-rate share of income, losses,

deductions, etc.◦ Receive quarterly distributions of cash flow (DCF)

Net Income+ Non Cash Expenses

- Reserve for maintenance/operating expenses

(DCF on average:20% Net Income

80% Non Cash Expenseaka: Depeciation)

Corp. MLP MLPDistribution

Net Income $ 100.00 $ 100.00 x5 $500.00

- IRS 39.5% 39.50 0

- State 5% 5.00 0


- IRS 15% 8.33 25% 25.00 25.00

- State 5% 2.77 5% 5.00 5.00

Net $ after tax $ 44.40 $ 70.00 $470.00

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Cash Flow = Fixed IncomeDistribution Growth

Tax efficientTax deferred

LiquidCapital Appreciation ??

Low Volatility ??

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It Depends !

EPD

ETP

KPM

NSH

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1. Identification2. Pass-thru taxation3. Passive Loss Rules4. Distributions are return of Capital5. Tax Basis6. Zero Basis Rules7. Year of Sale8. Recapture9. Estate Planning10. IRA’s & UBIT11. State Tax Implications

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Or PTP PAL Worksheet--

§469 PAL rules are applied to PTPs on an entity-by-entity basis◦ PTP losses can not be used against any other

income.◦ PTP losses can not even be used to offset income

any of other passive activities (including other PTPs)◦ Un-allowed losses are carried forward until That PTP has passive income The PTP is disposed of

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Corp. MLP MLPDistribution

Net Income $ 100.00 $ 100.00 x5 $500.00

- IRS 39.5% 39.50 0

- State 5% 5.00 0


- IRS 15% 8.33 25% 25.00 25.00

- State 5% 2.77 5% 5.00 5.00

Net $ after tax $ 44.40 $ 70.00 $470.00

Beginning (Initial Investment/Purchase) 100 @ $50 $5,000ADDITION+ Contributions+ Liabilities+ Income + $100SUBTRACT- Losses- Cash and other Distributions - $500- Decrease in LiabilitiesEnding Basis at end of year 1 $4,600

Beginning (of year 13) $200ADDITION+ Contributions+ Liabilities+ Income + $100SUBTRACT- Losses- Cash and other Distributions - $500- Decrease in LiabilitiesEnding Basis at end of year 13 ($200)

$200 is recognized as Capital Gain income in year 13 …

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Beginning (Initial Investment/Purchase) 100 @ $50 $5,000ADDITION+ Income + $100SUBTRACT- Cash and other Distributions - $500Ending Basis at end of year 1 $4,600Feb 1 of year 2 Sell 100 @ $52 $5,200Gain on Sale 100 @ $2 = $200 $600

1/1/2012 Purchase 100 @$50 5,0002/1/2014 Sell 100 @ $52 5,200Long Term Capital Gain $200

Beginning (Initial Investment/Purchase) 100 @ $50 $5,000ADDITION+ Income (includes $400 depreciation *) + $100SUBTRACT- Cash and other Distributions - $500Ending Basis at end of year 1 $4,600Feb 1 of year 2 Sell 100 @ $52 $5,200Gain on Sale 100 @ $2 = $200 $600

*Depreciation Recapture as Ordinary Income $400Long Term Capital Gain $200

Beginning (Initial Investment/Purchase) 100 @ $50 $5,000ADDITION+ Income (includes $400 depreciation *) + $100SUBTRACT- Cash and other Distributions - $500Ending Basis at end of year 1 $4,600Unit Holder dies on 1/31/year 2 w /FMV 100 @ 52 $5,200Feb 1 of year 2 Sell 100 @ $51 $5,100Gain on Sale 100 @ $-1 = ($100) ($100)

*Depreciation Recapture as Ordinary Income $0Long Term Capital Gain/(Loss) ($100)

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MLPs owned by IRAs are NOT reported on the tp’s individual 1040.

Think carefully before investing your IRA, 401(k), or other retirement plan in MLPs.

These plans are tax-exempt already, so don’t need the tax-deferral advantages of MLPs.

IRA assets are IRD and get NO step-up in basis.

More importantly, the plan’s share of partnership net income over $1,000 is subject to “unrelated business income tax” (UBIT).

If subject to UBIT, Retirement Plan’s Custodian is responsible for filing 990-T and paying UBIT,

but K1 is mailed to taxpayer.

Technically, partners owe tax on their share of income allocable to each state in which an MLP operates

Practically, after the MLP’s income is divided among all partners and all states, and depreciation and other deductions applied, each unit-holder’s income in each state will generally be too small to tax, except for those with large holdings.

Unless state tax filing requirements are based upon “Gross Income” vs. “Net Income” or “any taxable income”.

Don’t forget (if PTP paid State taxes on behalf of LPs)◦ Schedule A Deduction◦ AZ 309 Credit for Taxes Paid to a Foreign State

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uStar GP Holdings, LLC

0022068 2

11111111..1.1111111111111..11.11111111111111111111111111111111111

Dear Investor,

Enclosed you will find your tax package related to your investment in NuStar GP Holdings, LLC for the 2013 tax year.

Your 2013 tax package includes the following:

• State Schedule • Schedule K-1 • Schedule K-1 Supplemental Information and Definitions • Ownership Schedule — Please review for accuracy • Sales Schedule, if units were disposed of during the year • Graphic Guide with additional information on the back • Partner's Instructions for Schedule K-1 (Form 1065)

Please be sure to check the information on the Ownership Schedule for completeness and accuracy, as it is this information on which your tax allocations are based. If you find an error on the Ownership Schedule, please follow the instructions on that schedule to correct the information and obtain updated tax numbers.

Your 2013 Schedule K-1 is also available via the Internet at www.nustargpholdinqs.com. At this site, please click on "Investors" and then "K-1 Tax Information" which will take you to our Tax Reporting Package logon screen. After logon, you will be able to:

• View your 2013 tax schedules • Request changes to incorrect information • Print your tax package including instructions • Automatically transfer amounts from your Schedule K-1 to IRS forms filed by individuals • Download a file of your Schedule K-1 information that can be imported into TurboTax software • Calculate your projected gain/loss when selling units

If you would like to receive this information earlier and eliminate the need for mailing a paper K-1 in the future, simply follow the steps above to access our Tax Reporting Package website and choose the option to "Eliminate Paper K-1s". By choosing to eliminate paper K-1s, your tax information will bypass the U.S. Postal Service and be delivered securely through the website. We will even notify you via email the instant the K-1s are available.

The Tax Package Support line is also available at 1-(877) 804-9545 should you need additional assistance.

As always, we appreciate your investment in NuStar GP Holdings, LLC.

Sincerely,

Bradley C. Barron President and CEO

Geo

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Example 1: NSH

1077-0

1-00-0022

068-0001-0089827

uStar OP Holdings, LLC

2013 STATE

PARTNER NAME: ammilielmirr PARTNER FEDERAL ID/ENTITY: FEDERAL ID:

FEDERAL

alIMMI/INDIVIDUAL

ACCOUNT NUMBER: CUSTODIAN PARTNERSHIP ID: 85-0470977

The Federal Schedule K-1 and State Schedule summarize your allocable share of the Partnership's tax items based on your unit ownership as reported on the Ownership Schedule. You may need this information to prepare your federal and state income tax returns. Separate allocations and tax calculations were made for each lot of Partnership units. The product of these calculations was accumulated to sim-plify your tax reporting obligations.

Each line on the State Schedule represents your share of income tax items for certain states in which the Partnership had operations. Each state is identified by a two-letter code shown in the far left hand column of this schedule. Differen- ces between the sum of amounts on the State Schedule and amounts on the Federal Schedule K-1 are due to rounding, variations between federal and state income tax laws and varia- Lions in state apportionment methods. You may be required to file state income tax returns in these states.

Resident State Filing Guidelines: Gen- erally, the amounts reported on the Schedule K-1 and State Schedule are needed to prepare your income tax return for the state in which you live.

(1) (2) (3) (4) (5) (6) (7) (8) (9) (10)

s T A T E

NET ORDINARY

INCOME OR LOSS (-)

PORTFOLIO INTEREST INCOME

ORDINARY DIVIDENDS

QUALIFIED DIVIDEND INCOME

NET LONG-TERM

CAPITAL GAIN OR LOSS (-)

NET SECTION 1231 GAIN

OR LOSS (-)

INVESTMENT INCOME

ALTERNATIVE MINIMUM TAX

DEPRECIATION ADJUSTMENT

ALTERNATIVE MINIMUM TAX

ADJUSTED GAIN OR LOSS (-)

GROSS RECEIPTS

STATE INFORMATION (due to rounding and other Federal and State differences, totals may not agree to Federal totals)

AL AR CA CO CT FL GA IA I IN

KS LA MD MN MO NC ND NE NJ NM NY OK OR TX VA

INCOME OR LOSS (-) 9 7

40 10 0

12 1 3 2 2

46 206

17 24 9 3

18 25 35 20

1 17 6

775 6

FROM PASSIVE 0 0 1 0 0 0 0 0 0 0 2 8 1 1 0 0 1 1 1 1 0 1 0

293 0

ACTIVITY 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0

0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0

0 0 0 0 0 0 0 0 0 0 1 3 0 0 0 0 0 0 0 0 0 0 0

10 0

18

0 0 2 0 0 0 0 0 0 0 2 8 1 1 0 0 1 1 1 1 0 1 0

32 0

159

0 0 1 0 0 0 0 0 0 0 2 8 1 1 0 0 1 1 1 1 0 1 0

293 0

0 0

-2 0 0

-1 0 0 0 0

-2 -9 -1 -1 0 0

-1 -1 -2 -1 0

-1 0

-35 0

0 0

-1 0 0 0 0 0 0 0

-1 -6 0

-1 0 0 0

-1 -1 -1 0 0 0

-21 0

117 90

532 134

1

3624 22

615 2,737

219 319 115 46

236 339 469 271

10 228

85 10,563

76

Non-Resident State Filing Guidelines: The Partnership operates in numerous states which impose an income tax on a partner's share of partnership income allocable to such states. You may be required to file a tax return even though you are not a resident of these states. If you are required to file a nonresident return, you should enter your share of Partnership tax items attributable to the particular state on your state tax return.

Due to frequent tax law changes by the states, you should consult your tax advisor concerning the proper tax treatment.

George

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25 States

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651113 OMB No. 1545-0099

:IPartner s: Share of Currentveaelnoome; Deductions And"Other Items

16 A

17 A

F Partner's name, address, city, state, and ZIP code

R

member-manager member

H El Domestic partner ❑ Foreign partner

11 What type of entity is this partner? INDIVIDUAL

12 If this partner is a retirement plan (IRA/SEP/Keogh/etc.), check here (see instructions)

13 A

El Final K-1 ❑ Amended K-1

M13 41/

Schedule K-1 (Form 1065) Department of the Treasury For calendar year 2013, or tax Internal Revenue Service

year beginning

ending , 20

Partner's Share of Income, Deductions, Credits, etc.

Part III

15 Ordinary Business Income (loss)

1,451

Credits 1

, 2013

Net rental real estate income (loss) 2

3 Other net rental income (loss) Foreign transactions OTHCOUNTRIES ►See back of form and separate instructions. 1

InfOmation.Aboutthe Partnership Part I 4 Guaranteed payments

B 19,545 A Partnership's employer identification number

85-0470977 Interest income 5 1,257 D 318 B Partnership's name, address, city, state, and ZIP code

NUSTAR GP HOLDINGS, LLC ATTN: TAX DEPT.

P.O. BOX 781609 SAN ANTONIO, TX 78278-1609

Ordinary dividends 6a G 18

Qualified dividends 6b 918

Royalties 7 L 65 C IRS Center where partnership filed return

OGDEN, UT Net short-term capital gain (loss) 8

• Check if this is a publicly traded partnership (PTP) Net long-term capital gain (loss)

18 Alternative minimum tax (AMT) items

-65 9a

Information' About the Partner:: Part II

E Partners identifying number Collectibles (28%) gain (loss) 9b B -39

Unrecaptured section 1250 gain 9c

Net section 1231 gain (loss) 18 Tax-exempt income and nondeductible expenses

10 59

C 12 11 Other income (loss)

• General partner or LLC Limited partner or other LLC

Distributions 19

A 4,905 Section 179 deduction 12

Other deductions J Partners share of profit, loss, and capital (see instructions):

Beginning Ending 8 Other information 20

B A Profit 0.007041 % Loss 0.007041 %

Capital 0.007041 %

0 .000000% 0.000000 %

0.000000 %

10 318

STMT 1,452 V

14 Self-employment earnings (loss) K Partners share of liabilities at year end:

Nonrecourse 0

Qualified nonrecourse financing

Recourse . . $

Z* STMT

*See attached statement for additional information. L Partners capital account analysis:

Beginning capital account . . . $ 26,568 Capital contributed during the year . $ 0 Current year increase (decrease) . $ 1,752

Withdrawals & distributions $ ( 28,320)

Ending capital account 0

For

IRS

Use

On

ly

Tax basis ❑ GAAP ❑ Section 704(b) book

El Other (explain)

M Did the partner contribute property with a built-in gain or loss?

❑ Yes ©No 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) 2013

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Cash Cont 50%

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Cash Cont 30%

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Foreign Tax Paid

Schedule K-1 (Form 1065) 2013 Page 2

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 Passive loss

See the Partner's Instructions 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 7. Royalties

Schedule E, line 4 8. Net short-term capital gain (loss)

Schedule D, line 5

9a. Net long-term capital gain (loss)

Schedule D, line 12 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)


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

F Capital gain property (20%) organization (30%)

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 Partners 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


0 Dependent care benefits

Form 2441, line 12 P Preproductive period expenses


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 ✓ 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 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 Biofuel producer credit See the Partners Instructions J Work opportunity credit See the Partners Instructions

Code K Disabled access credit L Empowerment zone employment credit M Credit for increasing research activities N Credit for employer social security

and Medicare taxes O Backup withholding P Other credits

16. Foreign transactions A Name of country or U.S.

possession B Gross income from all sources 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 G Interest expense Form 1116, Part I H Other Form 1116, Part I Deductions allocated and apportioned at partnership level to foreign source income I Passive category J General category

J Form 1116, Part I

K Other

Other information L Total foreign taxes paid M Total foreign taxes accrued N Reduction in taxes available for credit O Foreign trading gross receipts P Extraterritorial income exclusion Q Other foreign transactions

17. Alternative minimum tax (AMT) items A Post-1986 depreciation adjustment B Adjusted gain or loss C Depletion (other than oil & gas) D Oil, gas, & geothermal—gross income E Oil, gas, & geothermal—deductions F Other AMT items

18. 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

19. Distributions

A Cash and marketable securities B Distribution subject to section 737 C Other property

20. Other information A Investment income B Investment expenses C Fuel tax credit information D Qualified rehabilitation expenditures

(other than rental real estate) E Basis of energy property F Recapture of low-income housing

credit (section 42(j)(5)) G Recapture of low-income housing

credit (other) H Recapture of investment credit I Recapture of other credits J Look-back interest—completed

long-term contracts K Look-back interest—income forecast

method L Dispositions of property with

section 179 deductions M Recapture of section 179 deduction N Interest expense for corporate

partners O Section 453(1)(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 ✓ Unrelated business taxable income W Precontribution gain (loss) X Section 108(i) information Y Net investment income Z Other information

Report on


Form 1116, Part I


Form 1116, Part II Form 1116, Part II Form 1116, line 12 Form 8873 Form 8873 See the Partner's Instructions

See the Partner's Instructions and the Instructions for Form 6251


Form 4952, line 4a Form 4952, line 5 Form 4136 See the Partner's Instructions

See the Partner's Instructions Form 8611, line 8

Form 8611, line 8

See Form 4255 See the Partner's Instructions See Form 8697

See Form 8866


1077-01-00-0022068-0002-0089828

2013 SCHEDULE K-1 SUPPLEMENTAL INFORMATION

13U QUALIFIED PRODUCTION ACTIVITIES

41

13V EMPLOYER'S FORM W-2 WAGES

10

20Z1 GROSS RECEIPTS

19,545

20Z2 NONTAXABLE ADJUSTMENT TO CAPITAL

0

ADDITIONAL SCHEDULE K-1 LINE ITEM DESCRIPTIONS

Domestic Production Activities Information (Code 13U and 13V) - This information is shown on your Schedule K-1, Box 13 and is used to report your share of qualified production activity income and wages. The amount reported in Box 13U should be reported on line 7b of Form 8903. The amount reported in Box 13V should be reported on line 17 of Form 8903.

Net Investment Income (Code 20Y) — Absent material participation in the operations of NuStar GP Holdings, LLC or another exception, NuStar GP Holdings, LLC expects that all of the items of income, gain, loss and deduction reported to you on this Schedule K-1 would be considered net investment income for purposes of Internal Revenue Code Section 1411 and potentially subject to a 3.8% surtax.

Gross Receipts (Code 20Z1) - This amount is reported on your Schedule K-1, Box 20 and represents your share of the Partnership's total income earned before expenses. You may need this information for state filing requirements and for federal reporting if you are a tax-exempt entity.

2013 STATE SUPPLEMENTAL INFORMATION

These items are reported for informational purposes only and will not be included with the Schedule K-1 that is filed with the Internal Revenue Service.

Louisiana Tax-Exempt Bond Financing 3 This is your share of the Partnership's interest expense associated with the Gulf Opportunity Zone Revenue Bonds issued by the Parish of St. James, Louisiana.

New York MCTD Activity NuStar GP Holdings, LLC has activity in the New York Metropolitan Commuter Transportation District (MCTD) through its ownership of NuStar Energy L.P. Please contact the Partnership for detailed information regarding this activity.

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SCHEDULE K-1 DEFINITIONS: Partnership's Employer Identification Number - The federal employer identification number for the Partnership must be reported on your U.S. Individual Income Tax Return, Form 1040, Schedule E, Part II, Column (d), "Employer Identification Number." 85-0470977 Ordinary Business Income (Loss) (Box 1) - This amount reflects your share of Partnership ordinary income or loss before any separately reported items. This amount should be reported on your U.S. Individual Income Tax Return, Form 1040, Schedule E, Part II, Column (g). Please note that the IRS Code Section 743(b) Adjustments, if applicable, have been included in Box 1. Other Net Rental Income (Loss) (Box 3) - This is your share of the income (loss) from the Partnership's rental activities. It should be reported on Form 1040, Schedule E, Part II, Column (g). Interest Income (Box 5) - This is your share of portfolio interest income. Report this amount on Form 1040, Schedule B, Part I, Line 1. Write "From NuStar GP Holdings, LLC 85-0470977." Dividend Income (Box 6a and 6b) - This is your share of portfolio dividend income and should be reported on Form 1040, Schedule B, Part II, Line 5. Write "From NuStar GP Hqldings, LLC 85-0470977." Net Short-Term Capital Gain (Loss) (Box 8) - This is your share of net short-term capital gain or loss from portfolio assets and should be reported on Form 1040, Schedule D, Part I, Line 5. Net Long-Term Capital Gain (Loss) (Box 9a) - This is your share of net long-term capital gain or loss from portfolio assets and should be reported on Form 1040, Schedule D, Part II, Line 12. Net Section 1231 Gain (Loss) (Box 10) - This is your share of gain or loss from the disposition of trade or business assets held by the Partnership for more than one year. Report this amount on Form 4797, Line 2. Write "From NuStar GP Holdings, LLC 85-0470977." Cash Contributions (Box 13A and 13B) - This is your share of cash contributions. Report this amount on Form 1040, Schedule A, Line 16. Please consult your personal tax advisor regarding AGI limitations on cash contributions. Foreign Gross Income and Deductions (Box 16A, 16B, 16D, 16G and 161) - These items reflect your share of gross income and deductions. Report these amounts on Form 1116, Part I. Foreign Taxes Paid (Box 16L) - This amount represents your share of total foreign taxes paid. Report this amount on Form 1116, Part II. Alternative Minimum Tax Depreciation Adjustment (Box 17A) - Property placed in service after 1986 generally must be depreciated differently for AMT purposes than for regular tax purposes. The net difference between AMT and regular tax depreciation is an adjustment for the calculation of your alternative minimum tax. This amount should be reported on Form 6251, Line 18. Alternative Minimum Tax Adjusted Gain or Loss (Box 17B) - This amount represents the reversal of cumulative AMT depreciation adjustments on property that was disposed of during the year. This amount should be reported on Form 6251, Line 17. Investment Income (Box 20A) - This amount is used in the computation of the limitation on deductible interest expense. Report this amount on Form 4952, Line 4a. Unrelated Business Taxable Income or Loss (Box 20V) - If your investment in the Partnership was made through an IRA, Keogh or other qualified retirement plan, or if you are any other tax-exempt entity, your trustee may be required to report a portion of the taxable income or loss as unrelated to your tax-exempt purpose on IRS Form 990-T (Exempt Organization Business Income Tax Return). You should consult your trustee or personal tax advisor for the appropriate tax treatment. If you are a tax-exempt entity, please note that a portion of our liabilities may be allocable to you and these liabilities may be treated as acquisition indebtedness for purposes of determining the amount of gain on sale that is subject to tax as unrelated business taxable income. Please consult your tax advisor and K-1 Support if more information is required.

PASSIVE ACTIVITY INCOME (LOSSES): The tax law characterizes the tax reporting items of income, gain, loss, and deduction from a publicly-traded limited partnership interest as relating to either passive or portfolio activities. The tax law limits the recognition of losses from passive activities of a publicly-traded limited partnership to the amount of passive activity income from that same partnership. Net passive activity income from a publicly-traded limited partnership is fully recognized. The income cannot be offset by net passive activity losses from other sources including other publicly-traded partnerships. Passive activity losses which are not recognized currently are suspended and carried forward until:

a. the partner is allocated net passive activity income from the same partnership against which the suspended losses can be offset, or

b. the partner disposes of their entire interest in the partnership, at which time the suspended losses are fully recognized.

If boxes 1, 3 and 10 on your Federal Schedule K-1 combine to result in a loss (negative number), do not report boxes 1, 3, 10, or 17 on your 2013 Federal Tax Return unless you disposed of your entire interest in the Partnership in 2013. However, boxes 5, 6a, 6b, 8 and 9a need to be reported on Schedules B and D regardless of the result of boxes 1, 3 and 10. If a net loss is reported to you in 2013, it is the result of depreciation allocated to you and is not indicative of the overall Partnership results. IMPORTANT - If your Schedule K-1 shows a loss from passive activity you may need to adjust certain amounts reported on the Federal and State Schedule to reflect the passive activity loss limitations. Please consult your personal tax advisor for the appropriate tax treatment.

1077-1)1_na.nr77nAR-000n-ons9om

Partner Name:

Account Number:

Partner Federal ID/Entity: 11111POINSINDIVIDUAL Custodian Federal ID:

uStar GP Holdings, LW

Page: 1 of 1

201$ OWNERSHIP SCHEDULE. ' TRANSACTION BROKER OR

CERTIFICATE NUMBER UNITS

DESCRIPTION DATE

The Ownership Schedule is NOT proof of AC BUY 12/18/2006 201 2,000.0000

ownership. This schedule contains a AC BUY 10/16/2008 201 1,000.0000

summary of your ownership history from DA SELL 08/15/2013 547 -3,000.0000

The information reported on this schedule, as corrected, accurately and completely presents my your original acquisition of Partnership units to December 31, 2013. ownership history through December 31, 2013. By signing this schedule, I authorize the Partnership

to make the corrections as indicated above to my Schedule K-1.

This information came directly from the transfer agent's records if you are a regis-tered holder. Ownership information for

Signed: •

Daytime Phone Number: 0.0000

brokerage nominee account) was pro-vided from your broker's or nominee's records, if the broker or nominee provided the information in accordance with Inter-nal Revenue Code Section 6031(c). IRS regulations regarding partnerships require brokers and nominees to inform the Part-nership directly of your unit activity so that we may furnish you with your tax information.

Dispositions of Partnership units have been treated as if they relate to the lots with the earliest acquisition date.

If you held multiple lots of Partnership units, the ownership information has been accumulated for each lot having a com-mon federal tax identification number and entity type. You will receive a separate tax package for each lot with a different tax identification number and different entity type. For lots attributable to an individual retirement account (IRA), Keogh or simi-lar type of account, the federal tax identifi-cation number of the custodian is shown.

If your records do not agree with the infor-mation reported on this Ownership Sche-dule, then the amounts reported in the rest of the tax package may not be correct. Please make any corrections directly onto this schedule, including any necessary explanations, sign where indi-cated and mail before May 15, 2014 to:

NuStar GP Holdings, LLC Tax Package Support P.O. Box 799060 Dallas, TX 75379-9060

or you may contact Tax Package Support by phone at (877) 804-9545 or by e-mail through our website at www.nustargp holdings.com.

If the Ownership Schedule is the only schedule containing information (i.e. the Schedule K-1 and State schedule is blank), then the ownership history the Partnership received from the transfer agent, brokerage firm or nominee for your account is inaccurate or incomplete. Please contact Tax Package Support for instructions on how to proceed.

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uStar OP Holdings, LLC 2013 SALES SCHEDULE Page: 1 of 1

This schedule should not be completed if you did not have a taxable disposition of any of your units. The Sales Schedule will only be provided if you had a taxable disposition of all or a portion of your Partnership interest in 2013. The information summarized in this schedule should be used to calculate the amount and character of the gain or loss from the disposition of Partnership units. Partnership units are considered to be sold in the order they were acquired. This approach has been applied for administrative convenience and is not consistent with IRS Revenue Ruling 84-53, which provides that a partner shall ap-portion the basis in its total partnership interest to any portion sold based on FMV. Each partner must determine on their own the basis to associate with units that are sold. The Partnership expresses no opinion on the appropriate method and has provided this schedule solely as a courtesy. Please consult your tax advisor for guidance.

Information Provided by Partnership Please note the items in Columns 1-3 have been provided by the transfer agent or your broker. If this information is incorrect, you should contact Tax Package Support at (877) 804-9545.

Column (6) - Cumulative Adjustments to Basis: This represents the cumulative amounts of income, gains, losses, deductions, credits and distributions allocated to these units since your purchase, which either increase or decrease your original tax basis in these units.

Column (8) - Ordinary Gain: If you have ordinary gain, a Section 751 Statement must be attached to your tax return.

IRC Section 751 Statement The taxpayer has reported ordinary income upon the disposition of units in NuStar GP Holdings, LLC, as provided by the Tax Matters Partner. The amount was determined in accordance with Internal Revenue Code Section 751 and the detailed information is available in the offices of the Tax Matters Partner upon

Information from Your Records Column (4) - Sales Proceeds: Enter the total amount you received from the sale, net of any commissions.

Column (5) - Purchase Amount: Enter the total amount you paid for the units including commissions. If you acquired the units by some means other than purchase (such as Inheritance), please contact your tax advisor.

Calculation of Gain or Loss Column (7) - Total Gain or Loss: Subtract the sum of the amounts in columns (5) and (6) from the amount in column (4) and enter the result here.

Column (9) - Capital Gain or Loss: Subtract the amount in column (8), if any, from the amount calculated in column (7).

1077-01-0

0-0022068-00

04-0089830

request. If you disposed of a portion of your units (rather than your entire interest) you may be subject to the passive activity loss limitation rules. Please consult your tax advisor for the appropriate tax treatment.

Absent material participation in the operations of NuStar GP Holdings, LLC or another exception, the gain or loss on your sale of NuStar GP Holdings, LLC units may be treated as net investment income for purposes of Internal Revenue Code Section-1-411 and potentially subject to a 3.8% surtax.

(1) (2) (3) (4) (5) (6) (7) (8) (9) (10) -

UNITS DISPOSED

DISPOSITION DATE

ACQUISITION DATE

SALES PROCEEDS

PURCHASE AMOUNT

CUMULATIVE ADJUSTMENTS

TO BASIS

TOTAL GAIN OR LOSS (-)

GAIN OR LOSS CLASSIFICATION ALTERNATIVE MINIMUM TAX

BASIS ADJUSTMENT

ORDINARY GAIN

CAPITAL GAIN OR LOSS (-)

2,000.0000 1,000.0000

08/15/2013 08/15/2013

12/18/2006 10/16/2008

-27,556 -10,122

21,205 7,852

-444 -200

PARTNER TOTALS 29,057 -644

REFERENCES FORM 4797 PART II, LINE 10

FORM 1040, SCHEDULE D

FORM 6251, LINE 17

Certain states require that nonresidents apportion the gain/loss from the sale of a partnership interest to their state. Listed below are the apportionment factors for states identified as imposing such requirements. The reporting requirements for each state may vary, and there could be additional states with similar requirements; therefore, it is important to consult with your tax preparer in completing any applicable state tax returns. Please contact Tax Package Support if additional information is required.

CA 2.713% ID 0.000% IA 0.185% ME 0.000% MA 0.000% MN 1.624% MT 0.000% ND 1.215% OK 1.172% OR 0.434%

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70,545 - ( 59,459 + -37,678) = 48,768 - = 19,707

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21,781

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29,057 19,707 (644)

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Gain/(Loss) per 1099B: 11,086 ------ Form 8949 Gain Adj. 8,621

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5 of 18

Robert W. Baird & Co. Incorporated

Proceeds from Broker and Barter Exchange Transactions 2013 1099-B*

(continued)

OMB No. 1545-0715

LONG-TERM TRANSACTIONS 6 - NONCOVERED tax lot for which cost basis is NOT reported to the IRS** Report on Form 8949, Part II, with Box E checked 8 - Description / CUSIP / 1 d - Symbol

These columns are not reported to the IRS

1 a - Date of Sale 2a - Proceeds of

Date of

Cost or Wash sale or exchan • e I e - Quantit

stocks bonds etc. ac • uisition other basis loss disallowed

Gain or loss Additional information

MIDDLESEX NJ4.875 021513 / CUSIP: 596562DK1 / Symbol: 02/15/13 30,000.000 30,000.00

09/17/98

30,000.00

0.00 Redemption Note: AA Original basis: $30,453.00

NUSTAR GROUP HLDGS LLC / CUSIP: 67059L102 / Symbol: NSH

2 tax lots for 08/15/13. Total proceeds (and cost when required) reported to the IRS.

2,000.000 47,030.27 12/18/06 43,231.76

1,000.000 23,515.14 10/16/08 16,227.25

08/15/13 3,000.000 70,545.41 VARIOUS 59,459.01

PIMA AZ HWY 4.375 070118 / CUSIP: 721882BK3 / Symbol: 07/01/13 35,000.000 35,000.00 07/07/08 35,000.00

3,798.51 Sale Note: LP Original basis: $44,321.76

7,287.89 Sale Note: LP Original basis: $16,772.25

0.00 11,086.40 Total of 2 lots

0.00 Redemption Note: AA Original basis: $35,909.55

VERIZON COMMS INC / CUSIP: 92343V104 / Symbol: VZ


750.000 39,519.22 01/07/09 22,880.89 16,638.33 Sale

250.000 13,173.08 03/30/10 7,463.45 5,709.63 Sale 05/01/13 1,000.000 52,692.30 VARIOUS 30,344.34 0.00 22,347.96 Total of 2 lots

WINDSTREAM CORP / CUSIP: 97381W104 / Symbol:


103.300 822.52 06/02/91 293.20 529.32 Sale Note: AC Original basis: $370.99

206.600 1,644.95 06/06/94 832.08 812.87 Sale Note: AC Original basis: $987.66

206.600 1,644.95 09/11/00 1,809.30 -164.35 Sale Note: AC Original basis: $1,964.88

* This is important tax information and is being furnished to the Internal Revenue Service. If you are required to file a return, a negligence penalty or other sanction may be imposed on you if this income is taxable and the IRS determines that it has not been reported. Remember, taxpayers are ultimately responsible for the accuracy of their tax return(s). **For NONCOVERED tax lots, values for "Date of acquisition," "Cost or other basis" and "Wash sale loss disallowed" are provided for your reference and are NOT reported to the IRS. # Less commissions and if shown, option premium.

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Page 6 of 18

Robert W. Baird & Co. Incorporated Account,lillan

Proceeds from Broker and Barter Exchange Transactions 2013 1099-B*

(continued) OMB No. 1545-0715

LONG-TERM TRANSACTIONS 6 - NONCOVERED tax lot for which cost basis is NOT reported to the IRS** Report on Form 8949, Part II, with Box E checked 8 - Description / CUSIP / 1d - Symbol

1 a - Date of Sale or exchange le - Quantity

2a - Proceeds of stocks, bonds, etc.

Date of acquisition

These columns are not reported to the IRS

Cost or Wash sale

other basis loss disallowed Gain or loss(-) Additional information

WINDSTREAM CORP / CUSIP: 97381W104 / Symbol: (cont'd)

516.500 4,112.39 02/21/03 3,521.08

700.000 5,573.42 10/10/06 8,885.52

300.000 2,388.61 07/26/07 4,129.17

1,967.000 15,661.33 12/08/09 19,941.45

03/27/13 4,000.000 31,848.17 VARIOUS 39,411.80

Totals: 340,632.13 294,132.73

591.31 Sale Note: AC Original basis: $3,910.06

-3,312.10 Sale Note: AC Original basis: $9,528.91



0.00 -7,563.63 Total of 7 lots

0.00

46,499.40

* This is important tax information and is being furnished to the Internal Revenue Service. If you are required to file a return, a negligence penalty or other sanction may be imposed on you if this income is taxable and the IRS determines that it has not been reported. Remember, taxpayers are ultimately responsible for the accuracy of their tax return(s). **For NONCOVERED tax lots, values for "Date of acquisition," "Cost or other basis" and "Wash sale loss disallowed" are provided for your reference and are NOT reported to the IRS. # Less commissions and if shown, option premium.

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-k.a• I- ti

1Ir,■ •

tia.001 ENERGY TRANSFER PARTNERS, L.P. (NYSE:ETP) -

Or.

9131 0010 EN RP 06 03062014 NNNNNN 01 024771 0104

aid111111111■111111011 TUCSON AZ 85739-3020

Tax Package Support PO Box 799060

Dallas, Texas 75379-9060 Phone: 1-800-792-7904

Fax: 1-866-554-3842 www.taxpackagesupport.com/etp

Dear Unitholder,

Enclosed is your Energy Transfer Partners, L.P. ("ETP" or "Partnership") tax package for the tax year ending December 31, 2013. 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 2013 tax year. 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. Therefore, it is important that you carefully review the information included in this package to ensure it is consistent with the information sent to you by your broker or transfer agent during 2013.

The following documents are provided in this package:

1. Schedule K-1 and Instructions 2. Supplemental K-1 Information Statement 3. Transaction Schedule 4. Sales Worksheets (only if units were sold in 2013) 5. State Information Schedules

This package includes a set of general instructions that you may use in conjunction with the 2013 Partner's Instructions for Schedule K-1 (Form 1065) that is published by the IRS and available on the Partnership's website. The Partnership's website also includes a list of Frequently Asked Questions ("FAQs") that pertain to the federal income tax issues associated with investments in Publicly Traded Partnerships ("PTPs").

The tax guidance contained in this package, reflected on the enclosed schedules and provided on the Partnership's website is based on existing federal and state tax laws and regulations as interpreted by the General Partner. This information is being provided for your general guidance, and is not intended to be, nor should it be construed as, the basis of tax advice. Before undertaking any tax filing, the Partnership suggests that you refer to the appropriate federal and state income tax laws or consult your personal tax advisor.

For tax years beginning after 2012, new Internal Revenue Code ("IRC") Section 1411 imposes a 3.8% surtax on certain passive investment income of individuals and of trusts and estates. Your share of income reported on this Schedule K-1 and any gain on the sale of ETP units may be subject to this surtax. The partnership encourages you to consult your tax advisor concerning the impact of IRC Section 1411 to you.

If you prefer to go paperless and receive your K-1 electronically, you can do so in the Account Management screen on www.taxpackagesupport.com/etp. By electing electronic delivery, you will no longer receive a copy in the mail. Instead, you will receive an email when your Schedule K-1 is available online.

To access your Schedule K-1 information online, you must register as a Tax Package Support user at www.taxpackagesupport.com/etp. During registration, you will provide your name, a valid email address, and a password. Once your registration is activated via a confirmation email, you will be directed to provide the name and Tax ID of the account(s) you are authorized to access. Any corrections to this information or any other information reflected in this package must be submitted to the Partnership by June 14, 2014 in any one of the following ways:

1. Mail to Energy Transfer Partners, L.P., Attention: Tax Package Support, P.O. Box 799060, Dallas, TX 75379-9060 2. Call Tax Package Support at 1-800-792-7904 or 3. Submit corrections online through the Partnership's website at www.taxpackagesupport.com/etp

Failure to submit corrections by June 14, 2014 may require you to file Form 8082 - "Notice of Inconsistent Treatment or Administrative Adjustment Request" with your federal income tax return.

Thank you for your investment in ETP.

Sincerely,

Energy Transfer Partners, L.P. SA6DF01-4GV

Geo

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Example 2: ETP

9131 0010 EN RP 06 03062014 NNNNNN 01 024771 0104

D Final K-1

651113 D Amended K-1 OMB No. 1545-0099

Partner's Share of Current Year Income, Deductions, Credits, and Other items

rn

2013 Schedule K-1 (Form 1065)

Part III

Part I Information About the Partnership

Ending

0.000503 % 0.000503 % 0.000503 %

Partner's share of profit, loss, and capital (see instructions): Beginning

Profit 0.000543 % 0.000543 % 0.000543 %

13 Tax basis D GAAP

Department of the Treasury For calendar year 2013, or tax Internal Revenue Service year beginning 2013

ending , 20

Partner's Share of Income, Deductions, Credits, etc. ► See back of form and separate instructions.

Partnership's employer identification number

73-1493906

Partnership's name, address, city, state, and ZIP code

ENERGY TRANSFER PARTNERS, L.P. 3738 OAK LAWN DALLAS, TX 75219

IRS Center where partnership filed return

Ogden, UT Check if this is a publicly traded partnership (PTP)

Information About the Partner Partner's identifying number

Partner's name, address, city, state, and ZIP code

1111111111111111111111=1.11111; TUCSON AZ 85739

[1] General partner or LLC 3 Limited partner or other LLC member-manager member

Domestic partner ❑ Foreign partner


12 If this partner is a retirement plan (IRA/SEP/Keogh/etc.), check here (see instructions)

Partner's share of liabilities at year end:

Nonrecourse . .

Qualified nonrecourse financing

Recourse .

1 Ordinary business income (loss)

-1,434 15 Credits

Net rental real estate income (loss)

Other net rental income (loss) 16 Foreign transactions

4 Guaranteed payments

5 Interest income

921 Ordinary dividends

1,235 6b - Qualified dividends

)23 7 Rw44)tiii",

1n a.

8 Net 4-4C`apita

a Net kJ is,

• vital in

ts

vag, 17

B

s hl tie jiati a minimum tax (AMT) items

-126

29 9b Collectibles (28%) gain (I

9c Unrecaptured section 1250 gain

10 Net section 1231 gain (loss)

260 18

C

Tax-exempt income and nondeductible expenses

15 11 Other income (loss)

19

A Distributions

7,890 12 Section 179 deduction

13

A

T*

Other deductions

279

STMT

20

A

V

Z*

Other information

4,138

-804

STMT 14 Self-employment earnings (loss)

*See attached statement for additional information.

Partner's capital account analysis:

Beginning capital account . . .

Capital contributed during the year

Current year increase (decrease) .

Withdrawals & distributions

Ending capital account .

El Other (explain)


El Yes 3 No If "Yes," attach statement (see instructions)

Part II

85,487

31,427 0

2,668 (7,890) 26,205

D Section 704(b) book

0 a)

(/) CC

O 1.1.-

Loss

Capital

For Paperwork Reduction Act Notice, see Instructions for Form 1065. IRS.gov/form1065 Cat. No. 11394R

Schedule K-1 (Form 1065) 2013 SA5DFO3E

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9131 0010 EN RP 06 03062014 NNNNNN 01 024771 0104

Schedule K-1 (Form 1065) 2013

Page 2

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 Passive loss See the Partner's Instructions Passive income Schedule E, line 28, column (g) Nonpassive loss Schedule E, line 28, column (h)

Schedule E, line 28, column (j) See the Partner's Instructions

9c. Unrecaptured section 1250 gain 10. Net section 1231 gain (loss) 11. Other income (loss)

Code A Other portfolio income (loss) B Involuntary conversions C Sec. 1256 contracts & straddles D Mining exploration costs recapture E Cancellation of debt F Other income (loss)

12. Section 179 deduction 13. Other deductions

A Cash contributions (50%) B Cash contributions (30%) C Noncash contributions (50%) D Noncash contributions (30%) E Capital gain property to a 50%

organization (30%) F Capital gain property (20%) G Contributions (100%) H Investment interest expense I Deductions—royalty income J Section 59(e)(2) expenditures K Deductions—portfolio (2% floor) L Deductions—portfolio (other) M Amounts paid for medical insurance N Educational assistance benefits O Dependent care benefits P Preproductive period expenses O Commercial revitalization deduction

from rental real estate activities R Pensions and IRAs S Reforestation expense deduction T Domestic production activities

information U Qualified production activities income ✓ Employer's Form W-2 wages 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 C Gross non-farm income

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 426)(5)) from post-2007 buildings

▪ Low-income housing credit (other) from post-2007 buildings


F Other rental real estate credits G Other rental credits H Undistributed capital gains credit I Biofuel producer credit J Work opportunity credit K Disabled access credit

Code Report on

L Empowerment zone employment credit

M Credit for increasing research activities

N Credit for employer social security and Medicare taxes

O Backup withholding P Other credits

16. 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 G Interest expense Form 1116, Part I 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 inforrnation 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 O Foreign trading gross receipts Form 8.873 P Extraterritorial income exclusion Form 8873

O Other foreign transactions See the Partner's Instructions 17. Alternative minimum tax (AMT) items

A Post-1986 depreciation adjustment B Adjusted gain or loss C Depletion (other than oil & gas) D Oil, gas, & geothermal—gross income E Oil, gas, & geothermal—deductions F Other AMT items

18. 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

19. Distributions A Cash and marketable securities B Distribution subject to section 737 I See the Partner's Instructions C Other property

20. Other information A Investment income B Investment expenses C Fuel tax credit information D Qualified rehabilitation expenditures

(other than rental real estate) E Basis of energy property F Recapture of low-income housing

credit (section 42(j)(5)) G Recapture of low-income housing

credit (other) H Recapture of investment credit I Recapture of other credits J Look-back interest—completed

long-term contracts K Look-back interest—income forecast

method L Dispositions of property with

section 179 deductions M Recapture of section 179 deduction N Interest expense for corporate

partners O Section 453(1)(3) information P Section 453A(c) information O 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 ✓ Unrelated business taxable income W Precontribution gain (loss) X Section 108(i) information Y Net investment income 7 Other information

Nonpassive income 2. Net rental real estate income (loss) 3. Other net rental income (loss)

Net income Net loss

4. Guaranteed payments 5. Interest income 6a. Ordinary dividends 6b. Qualified dividends 7. Royalties 8. Net short-term capital gain (loss) 9a. Net long-term capital gain (loss) 9b. Collectibles (28%) gain (loss)

Schedule E, line 28, column (g) See the Partner's Instructions Schedule E, line 28, column (j) Form 1040, line 8a Form 1040, line 9a Form 1040, line 9b Schedule E, line 4 Schedule D, line 5 Schedule D, line 12 28% Rate Gain Worksheet, line 4 (Schedule D instructions) See the Partner's Instructions See the Partner's Instructions

See the Partner's Instructions See the Partner's Instructions Form 6781, line 1 See Pub. 535 Form 1040, line 21 or Form 982 See the Partner's Instructions See the Partner's Instructions


Form 4952, line 1 Schedule E, line 19 See the Partner's Instructions Schedule A, line 23 Schedule A, line 28 Schedule A, line 1 or Form 1040, line 29 See the Partner's Instructions Form 2441, line 12 See the Partner's Instructions See Form 8582 instructions

See the Partner's Instructions See the Partner's Instructions See Form 8903 instructions

Form 8903, line 7b Form 8903, line 17

See the Partner's Instructions See the Partner's Instructions


Form 1040, line 71; check box a

I See the Partner's Instructions


See the Partner's Instructions and the Instructions for Form 6251

Form 4952, line 4a Form 4952. line 5 Form 4136 See the Partner's Instructions

See the Partner's Instructions Form 8611, line 8

Form 8611, line 8

See Form 4255 See the Partner's Instructions See Form 8697

See Form 8866


SA5DFO3G

9131 0010 EN RP 06 03062014 NNNNNN 01 024771 0104

ENERGY TRANSFER PARTNERS, L. P. (NYSE:ETP) SUPPLEMENTAL K-1 INFORMATION STATEMENT FOR TAX YEAR 2013 Type of

FEIN Activity Disposed PTP Pass-through

73-1493906 trade/business x x



Schedule of Separate Passive Activites

ETP: Energy Transfer Partners, L.P.

APU: Amerigas Partners, L.P.

SXL: Sunoco Logistics Partners L.P.

The passive activity loss limitations provide that individuals and some other types of investors that do not meet certain business participation thresholds may only deduct losses from these activities to the extent of the taxpayer's income from such activities. One of the unique tax issues related to investments in PTPs provides that the passive activity loss limitations are generally applied separately with respect to each PTP that is owned by the taxpayer. However, the application of the passive loss limitations to tiered PTPs is not entirely clear, so you should consult your personal tax advisor as to whether you are subject to the passive loss limitations, and if so, how the information presented below should be reported in your federal and state income tax returns.

Absent material participation in the operations of Energy Transfer Partners, L.P. or another exception, the partnership expects that all of the items of income, gain, loss and deduction reported to you on this Schedule K-1 would be considered net investment income for purposes of IRC Section 1411 and potentially subject to a 3.8% surtax.

This schedule identifies your direct and indirect share of ETP's, APU's and SXL's income or loss that is allocable to each PTP's separate business activities. Current year losses generated by each PTP that are not deductible due to the passive loss limitations may either be (i) deducted in future tax reporting periods to offset passive income generated by the same PTP, or (ii) deducted in full in the tax year that you dispose of your entire investment in the Partnership in a fully taxable transaction with an unrelated party.

1 Separate PTP Ordinary Business Income (Loss) 5 Interest income 6a Ordinary dividends 6b Qualified dividends 9a Net long-term capital gain (loss) 10 Net Section 1231 Gain (Loss) 13 Other deductions

A Charitable Contributions H Investment Interest Expense T1 Domestic production gross receipts (DPGR) (from oil and gas activities) T2 Cost of goods sold allocable to DPGR (from oil and gas activities) T3 Total deductions, expenses, and losses directly allocable to DPGR (from oil and gas activities) T4 Other deductions, expenses, and losses not directly allocable to DPGR (from oil and gas activities) T5 DPGR Employers W-2 wages

17A Post - 1986 depreciation adjustment 17B Adjusted Gain or Loss 18C Nondeductible expenses 19A Cash and marketable securities 20 Other Information

A Investment income V Total unrelated business taxable income included on Schedule K-1, page 1 Zi UBTI included on Schedule K-1, line 1 Z2 UBTI from debt financed dividend and interest income included on Schedule K-1, page 1 Z3 Depreciation Adjustment for Non-Conforming States Z4 Section 1231 Gain (Loss) Adjustment for Non-Conforming States Z5 AMT Depreciation Adjustment for Non-Conforming States Z6 Entity Level State Income Tax Included in Box 1 Z7 Nontaxable Adjustment to Capital Account Z8 E&P adjustment due to depreciation and asset sales Z9 Gross Receipts

ETP APU SXL

-3,556 2,017 105 903 17 1

1,149 0 86 1,149 0 86

0 1,982 0 238 22 0

2 0 0 276 0 3

2,425 0 0 5,162 0 0

246 0 0 4,099 0 0

68 0 0 -93 -56 23

0 29 0 14 0 1

7,890 0 0

2,052 1,999 87 -2,926 2,017 105 -3,556 2,017 105

630 0 0 -683 0 253

0 0 0 792 0 89 40 0 0

0 0 0 0 0 0

25,503 1,604 22,054

SA6DFOGZ

George Harris

George Harris

George Harris

George Harris

George Harris

George Harris

George

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9131 0010 EN RP 06 03062014 NNNNNN 01 024(11 0104

TRANSACTION SCHEDULE

ENERGY TRANSFER PARTNERS, L.P. (NYSE:ETP) PARTNER NAME:

ACCOUNT NUMBER:

PARTNER FEDERAL ID/ENTITY: gillIONVINDIVIDUAL CUSTODIAN FEDERAL ID:

PARTNERSHIP FEDERAL ID: 73-1493906

NOTE: THIS TRANSACTION SCHEDULE IS NOT PROOF OF OWNERSHIP IN ENERGY TRANSFER PARTNERS, L.P.

This important document contains your ownership of ETP units during 2013 including units bought or sold by date and number of units as reported to the Partnership by your broker or the Partnership's transfer agent.

TRANSACTION

DESCRIPTION DATE BROKER OR

CERTIFICATE NUMBER UNITS AC BUY 06-30-2009 141 1,700.0000 AC BUY 06-30-2009 141 300.0000 AC BUY 06-30-2009 141 200.0000

END OF YEAR UNITS 2,200.0000

SEE TAX INSTRUCTIONS FOR ADDITIONAL INFORMATION

ACKNOWLEDGEMENT FOR CORRECTIONS ONLY

The information reported on this schedule, as corrected, accurately and completely presents my ownership history through 12/31/13.

Signature Daytime Phone Fax Number Date SA6DFOHO

9131 0010 EN RP 06 03062014 NNNNNN 01 024771 0104

2013 STATE INFORMATION ENERGY TRANSFER PARTNERS, L.P. (NYSE:ETP) ETP Stand-Alone State Activity Report

-NZ

PARTNER NAME:

ACCOUNT NUMBER:

PARTNER FEDERAL ID/ENTITY:

CUSTODIAN FEDERAL ID:

PARTNERSHIP FEDERAL ID:

411111111101.11NDIVIDUAL

73-1493906 Since the Partnership has operations in multiple states, you may be required to file an income tax return in those states. This schedule identifies your share of reportable state income or loss items for states where the Partnership conducts business that may impose an income tax. In most cases, these items are required to be reported separately in your state income tax returns. Please refer to the 2013 K-1 Instructions attached under the heading "State Information Schedule" for additional general state income tax reporting guidance.

The Partnership has elected federal bonus depreciation for the 2013 tax year and/or in prior tax years. Certain states allow federal bonus depreciation in all situations for purposes of calculating state taxable income (the "conforming" states) while other states disallow or restrict the amount of federal bonus depreciation allowed for purposes of calculating state taxable income (the "non-conforming" states). For the 2013 tax year, on the State Income Tax Contact Chart, the Partnership has identified, with an asterisk (1, the non-conforming states. If you received an allocation of income/loss in column 1 and/or an allocation of Section 1231 gain/loss in column 6 from a non-conforming state, potential bonus depreciation adjustments for that non-conforming state have been reflected in columns 2 and 7, respectively. However, non-conforming states may treat certain categories of partners (e.g. individuals, partnerships, corporations) differently. Please review the rules of each state or consult your tax advisor to determine whether or not the bonus depreciation adjustments in columns 2 and 7 apply to your particular situation. If a bonus depreciation adjustment applies to your situation, the amounts in columns 2 and 7 should be added to the amounts in column 1 and 6, respectively, to arrive at the amount of ordinary income/loss and net section 1231 gain/loss that is reportable in each non-conforming state.

If you are subject to the passive activity loss rules, you should consult your personal tax advisor as to how the state information included in this schedule should be reported in your state income tax returns.

Also note that you may or may not be required to file income tax returns for all states listed in this schedule due to state requirements and/or limited activity in the state. We recommend that you consult your personal tax advisor on this matter. ETP is not in a position to provide any further guidance as to the applicability of state income tax filings beyond that which is provided herein.

(Due to rounding and State Information

not agree to Federal totals) other Federal and State differences, totals may

STATE

(1) SEPARATE ORDINARY INCOME /

LOSS (-) FROM THIS ACTIVITY

(2) POTENTIAL

BONUS DEPRECIATION ADJUSTMENT TO COLUMN 1

(3)

INTEREST INCOME

(4)

DIVIDEND INCOME

(5)

NET LONG TERM

CAPITAL GAIN/LOSS(-)

(6)

NET SECTION 1231 GA1WLOSS(-)

(7) POTENTIAL

SECTION 1231 GAIN/LOSS

ADJUSTMENT TO COLUMN 6

(8)

INVESTMENT INTEREST EXPENSE

(9)

GROSS RECEIPTS

(10)

ENTITY LEVEL STATE INCOME

TAX

AL -1 0 0 0 0 0 0 0 10 0 AR -35 -7 9 11 0 2 0 3 254 0 AZ -55 -11 14 18 0 4 0 4 397 1 CA -6 -1 2 2 0 0 0 0 46 0 CO -6 0 2 2 0 0 0 0 45 0 FL -7 -1 2 2 0 0 0 1 50 0 GA -1 0 0 0 0 0 0 0 7 0 IA -1 0 0 0 0 0 0 0 9 0 IL -10 -2 3 3 0 1 0 1 72 0 IN -74 -14 19 24 0 5 0 6 533 1 KS -17 6 4 6 0 1 0 1 123 0 KY -5 -1 1 2 0 0 0 0 36 0 LA -178 0 45 58 0 12 0 14 1,278 2 MA -3 -1 1 1 0 0 0 0 21 0 MD -29 -6 7 9 0 2 0 2 209 0 MI -23 -4 6 7 0 2 0 2 166 0 MN -26 -5 7 8 0 2 0 2 185 0 MO -2 0 0 1 0 0 0 0 14 0 MS -5 -1 1 2 0 0 0 0 38 0 MT -1 0 0 0 0 0 0 0 4 0 NC -4 -1 1 1 0 0 0 0 26 0 ND -8 0 2 3 0 1 0 1 58 0 NE 0 0 0 0 0 0 0 0 3 0 NJ -39 -8 10 13 0 3 0 3 281 0 NM -88 0 22 29 0 6 0 7 633 1 NY -5 -1 1 2 0 0 0 0 33 0 OH -15 -3 4 5 0 1 0 1 106 0 OK -212 0 54 69 0 14 0 16 1,521 2 PA -108 -21 27 35 0 7 0 8 775 1 SC -1 0 0 0 0 0 0 0 8 0 TN -2 0 1 1 0 0 0 0 18 0 UT 0 0 0 0 0 0 0 0 2 0 VA -38 -7 10 12 0 3 0 3 273 0 WV -8 0 2 2 0 1 0 1 55 0

DO NOT INCLUDE THIS SCHEDULE WITH YOUR FEDERAL OR STATE INCOME TAX RETURNS SEE TAX INSTRUCTIONS FOR ADDITIONAL INFORMATION

SA6DFOH6

George

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34 States

George

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George

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$8

9131 0010 EN RP 06 03062014 NNNNNN 01 024771 0104

ENERGY TRANSFER 2013 STATE INFORMATION

PARTNERS, L.P. (NYSE:ETP) APU Stand-Alone State Activity Report

MINIMINIIIIIMM111111

1.1111.0./INDIVIDUAL

73-1493906

PARTNER NAME:

ACCOUNT NUMBER:




Since the Partnership has operations in multiple states, you may be required to tile an income tax return in those states. This schedule identifies your share of reportable state income or loss items for states where the Partnership conducts business that may impose an income tax. In most cases, these items are required to be reported separately in your state income tax returns. Please refer to the 2013 K-1 Instructions attached under the heading "State Information Schedule" for additional general state income tax reporting guidance. The Partnership has elected federal bonus depreciation for the 2013 tax year and/or in prior tax years. Certain states allow federal bonus depreciation in all situations for purposes of calculating state taxable income (the "conforming" states) while other states disallow or restrict the amount of federal bonus depreciation allowed for purposes of calculating state taxable income (the "non-conforming" states). For the 2013 tax year, on the State Income Tax Contact Chart, the Partnership has identified, with an asterisk (*), the non-conforming states. If you received an allocation of income/loss in column 1 and/or an allocation of Section 1231 gain/loss in column 6 from a non-conforming state, potential bonus depreciation adjustments for that non-conforming state have been reflected in columns 2 and 7, respectively. However, non-conforming states may treat certain categories of partners (e.g. individuals, partnerships, corporations) differently. Please review the rules of each state or consult your tax advisor to determine whether or not the bonus depreciation adjustments in columns 2 and 7 apply to your particular situation. If a bonus depreciation adjustment applies to your situation, the amounts in columns 2 and 7 should be added to the amounts in column 1 and 6, respectively, to arrive at the amount of ordinary income/loss and net section 1231 gain/loss that is reportable in each non-conforming state.



(Due to rounding and

State Information agree to Federal totals) other Federal and State differences, totals may not

STATE



(2) POTENTIAL


(3)

INTEREST INCOME

(4)

DIVIDEND INCOME

(5)

NET LONG TERM


(6)

NET SECTION 1231 GAIN/LOSS(-)

(1) POTENTIAL



(8)


(9)

GROSS RECEIPTS

(10)


TAX

AL 31 0 0 0 30 0 0 0 24 0

AR 34 0 0 0 33 0 0 0 27 0

AZ 52 0 0 0 51 1 0 0 41 0

CA 225 0 2 0 221 2 0 0 179 0 CO 52 0 0 0 51 1 0 0 41 0 CT 15 0 0 0 14 0 0 0 12 0

DE 8 0 0 0 8 0 0 0 6 0 FL 146 0 1 0 144 2 0 0 116 0 GA 50 0 0 0 50 1 0 0 40 0 HI 11 0 0 0 11 0 0 0 9 0 IA 9 0 0 0 9 0 0 0 7 0 ID 26 0 0 0 26 0 0 0 21 0 IL 49 0 0 0 48 1 0 0 39 0 IN 34 0 0 0 33 0 0 0 27 0 KY 28 0 0 0 28 0 0 0 22 0 LA 16 0 0 0 15 0 0 0 12 0 MA 22 0 0 0 21 0 0 0 17 0 MD 22 0 0 0 22 0 0 0 18 0 ME 7 0 0 0 7 0 0 0 6 0

MI 93 0 1 0 91 1 0 0 74 0 MN 23 0 0 0 22 0 0 0 18 0 MO 48 0 0 0 47 1 0 0 38 0 MS 8 0 0 0 8 0 0 0 6 0 MT 33 0 0 0 33 0 0 0 26 0 NC 108 0 1 0 106 1 0 0 86 0 ND 1 0 0 0 1 0 0 0 1 0 NH 52 0 0 0 51 1 0 0 42 0 NJ 35 0 0 0 34 0 0 0 28 0 NM 28 0 0 0 27 0 0 0 22 0 NY 47 0 0 0 47 1 0 0 38 0 OH 73 0 1 0 11 1 0 0 58 0 OK 11 0 0 0 10 0 0 0 8 0 OR 18 0 0 0 17 0 0 0 14 0 PA 170 0 1 0 167 2 0 0 135 0 RI 2 0 0 0 2 0 0 0 2 0 SC 36 0 0 0 35 0 0 0 28 0 TN 66 0 1 0 65 1 0 0 53 0 UT 22 0 0 0 22 0 0 0 18 0 VA 92 0 1 0 91 1 0 0 73 0 VT 28 0 0 0 28 0 0 0 22 0 WI 20 0 0 0 20 0 0 0 16 0 WV 11 0 0 0 11 0 0 0 9 0


SA6DFOH7

George

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9131 0010 EN RP 06 03062014 NNNNNN 01 024771 0104

2013 STATE INFORMATION ENERGY TRANSFER PARTNERS, L.P. (NYSE:ETP) SXL Stand-Alone State Activity Report PARTNER NAME:

ACCOUNT NUMBER:




411110.1.1111■11110 1111111rnimmmeir

ofanIMIF/INDIVIDUAL

73-1493906 Since the Partnership has operations in multiple states, you may be required to file an income tax return in those states. This schedule identifies your share of reportable state income or loss items for states where the Partnership conducts business that may impose an income tax. In most cases, these items are required to be reported separately in your state income tax returns. Please refer to the 2013 K-1 Instructions attached under the heading "State Information Schedule" for additional general state income tax reporting guidance.

The Partnership has elected federal bonus depreciation for the 2013 tax year and/or in prior tax years. Certain states allow federal bonus depreciation in all situations for purposes of calculating state taxable income (the "conforming" states) while other states disallow or restrict the amount of federal bonus depreciation allowed for purposes of calculating state taxable income (the "non-conforming" states). For the 2013 tax year, on the State Income Tax Contact Chart, the Partnership has identified, with an asterisk (*), the non-conforming states. If you received an allocation of income/loss in column 1 and/or an allocation of Section 1231 gain/loss in column 6 from a non-conforming state, potential bonus depreciation adjustments for that non-conforming state have been reflected in columns 2 and 7, respectively. However, non-conforming states may treat certain categories of partners (e.g. individuals, partnerships, corporations) differently. Please review the rules of each state or consult your tax advisor to determine whether or not the bonus depreciation adjustments in columns 2 and 7 apply to your particular situation. If a bonus depreciation adjustment applies to your situation, the amounts in columns 2 and 7 should be added to the amounts in column 1 and 6, respectively, to arrive at the amount of ordinary income/loss and net section 1231 gain/loss that is reportable in each non-conforming state.



(Due to rounding and State Information

agree to Federal totals) other Federal and State differences, totals may not

STATE



(2) POTENTIAL


(3)

INTEREST INCOME

(4)

DIVIDEND INCOME

(5)

NET LONG TERM


(6)

NET SECTION 1231 GAIN/LOSS(-)

(7) POTENTIAL



(8)


(9)

GROSS RECEIPTS

(10)


TAX

AL 0 0 0 0 0 0 0 0 9 0 AR 1 3 0 1 0 0 0 0 220 0 AZ 2 4 0 1 0 0 0 0 343 0 CA 0 0 0 0 0 0 0 0 40 0 CO 0 0 0 0 0 0 0 0 39 0 FL 0 0 0 0 0 0 0 0 — 43 0 GA 0 0 0 0 0 0 0 0 6 0 IA 0 0 0 0 0 0 0 0 7 0 IL 0 1 0 0 0 0 0 0 62 0 IN 2 5 0 2 0 0 0 0 461 0 KS 1 0 0 0 0 0 0 0 106 0 KY 0 0 0 0 0 0 0 0 31 0 LA 5 0 0 4 0 0 0 0 1,105 0 MA 0 0 0 0 0 0 0 0 19 0 MD 1 2 0 1 0 0 0 0 181 0 MI 1 2 0 1 0 0 0 0 144 0 MN 1 2 0 1 0 0 0 0 160 0 MO 0 0 0 0 0 0 0 0 12 0 MS 0 0 0 0 0 0 0 0 33 0 MT 0 0 0 0 0 0 0 0 4 0 NC 0 0 0 0 0 0 0 0 22 0 ND 0 0 0 0 0 0 0 0 51 0 NE 0 0 0 0 0 0 0 0 3 0 NJ 1 3 0 1 0 0 0 0 243 0 NM 3 0 0 2 0 0 0 0 547 0 NY 0 0 0 0 0 0 0 0 29 0 OH 0 1 0 0 0 0 0 0 92 0 OK 6 0 0 5 0 0 0 0 1,315 0 PA 3 8 0 3 0 0 0 0 670 0 SC 0 0 0 0 0 0 0 0 7 0 TN 0 0 0 0 0 0 0 0 15 0 UT 0 0 0 0 0 0 0 0 1 0 VA 1 3 0 1 0 0 0 0 236 0 WV 0 0 0 0 0 0 0 0 48 0


SA6DFOH8

George

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ENTERPRISE' ENTERPRISE PRODUCTS PARTNERS L. P. (NYSE:EPD)

2.11111111111116 TUCSON AZ 85739-3020

Tax Package Support PO Box 799060

Dallas, Texas 75379-9060 Phone: 1-800-599-9985

Fax: 1-866-554-3842 www.taxpackagesupport.com/enterprise

I I I 111 I III 11111I 1111

Dear EPD Unitholder,

Attached please find your EPD tax package for the year ended December 31, 2013. The information contained in this package is being provided to you because the Partnership has been notified either by your broker or the Partnership transfer agent that you were an owner of Partnership units during the 2013 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 contained in this package and, in particular, the Transactions Schedule (explained below) to ensure it is consistent with the information sent to you by your broker or transfer agent during 2013.

The information contained in this package is more voluminous than what, you generally receive from your traditional equity investments in corporations. This is largely attributable to the more tax-favorable structure of EPD as a publicly traded partnership (PTP) under U.S. tax law. As a PTP, the Partnership generally does not pay taxes like a corporation, thereby allowing more cash to be distributed to its unitholders. Such favorable tax treatment creates some additional tax complexity compared with traditional investments in a corporation. For example, the Form 1099 issued by corporations only reports interest and dividends. Partnerships, however, are additionally 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 properly report this information on your tax return. Be advised that this information is also provided on EPD's website, which may be accessed at www.enterpriseproducts.com and clicking K-1 Information, then www.taxpackagesupport.com/enterprise, which takes you to the Partnership's Tax Reporting Package logon screen. For online access to your K-1 information - if you haven't already done so - you must register as a Tax Package Support user at this site. During registration you will provide your name, a valid email address and a password. Once your registration is activated via a confirmation email, you can provide the name and Tax ID for the account(s) you wish to access. The website allows you to transfer information to IRS tax forms or to download a file, which can be imported into Turbo Tax software.

The following documents are being provided in this package:

1. Schedule K-1, including a page for K-1 Supplemental Information: The Schedule K-1, provides your share of the Partnership's 2013 income, deductions, credits, and related items. The K-1 Supplemental Information Statement provides the box number the code, the description, and the dollar amount for those items in each of the applicable boxes on the Schedule K-1 with an asterisk or STMT. 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)).

Under the current federal tax code, the partnership is allowed to take "bonus depreciation" on assets meeting certain criteria. Some states do not follow the federal tax code with regard to this provision. The information concerning your share of bonus depreciation is included on the K-1 Supplemental Information Statement for Tax Year 2013 - item 20Z3 - so that you may make the necessary adjustments, if applicable, to comply with the law ih effect in your resident filing state.

For tax years beginning after 2012, new Internal Revenue Code (TIC) Section 1411 imposes a 3.8% surtax on certain passive investment income of individuals and of trusts and estates. Your share of income reported on your Schedule K-1 and, if applicable, any gain or loss on the sale of EPD units may be subject to this surtax. See Form 8960 for further details. EPD encourages you to consult your personal tax advisor concerning the impact of Section 1411 to you.

2. State Information: Since the Partnership has operations in more than 35 states, you may be required to file an income tax return with certain of those states. In some states, the Partnership is subject to and pays state taxes levied on an entity level basis as opposed to a partner level basis. In such states, taxes payable by, the Partnership are treated as state income taxes for federal income tax purposes. Column 7 of the State Information sheet represents your share of state taxes treated as state income taxes for federal income tax purposes. You may need this information to complete your state income tax return for those states where a deduction is allowed since the state tax expense is not included in column 1 of the State Information sheet. This State Information is not a tax return document.

3. Transactions Schedule and (if applicable) Sales Worksheet: These two important documents contain your history of EPD units bought or sold by date and number of units as reported to the Partnership by your broker or the Partnership's transfer agent. (Note, however, that the Transactions Schedule is not proof of ownership in EPD.) If applicable, the 2013 Sales Worksheet is provided to calculate your gain or loss from the disposition of Partnership units during the 2013 year. Note: If you did not dispose of any EPD units during 2013 you will not receive a Sales Worksheet. If you disposed of any EPD units during 2013 you will receive two Sales Worksheets - one for your federal return and for many state returns, and one for your state return

SAADG027

Geo

Typewritten Text

Example 3: EPD

9127 0010 0 RP 16 02162014 YNNNNN 01 013679 0075

ENTERPRISE' ENTERPRISE PRODUCTS PARTNERS L. P. (NYSE:EPD)

if you reside in one of the states that does not allow onus depreciation. If you reside in such a state, use Sales Worksheet 2 to compute the gain or loss on the disposition of your EPD units to be reported to your resident filing state. The 2013 Sales Worksheet(s) provides specific instructions to calculate your ordinary and capital gain or loss. Close attention should be paid to these instructions. In addition, if you sold EPD units during the 2013 tax year, you will need to file a Code Section 751 Statement; an example is provided in the lndividuaized Income Tax Reporting Instructions. li

4. Individualized Income Tax Reporting Instructions: T is document provides information to assist you in reporting the amounts shown on your Schedule K-1 onto the appropriate IRS tax forms.

5. 2013 Partner's Instructions for Schedule K-1 (Form 1065)

Please carefully review the information on your Transactions Schedule. If the information is inaccurate, please contact us as instructed below. We will issue a revised Schedule K-1, Transactions Schedule, State Information Sheet, and (if applicable), Sales Worksheet, as soon as possible.

We urge you to read the Tax Instructions carefully prior to preparing your federal or state tax returns. Note: If you have a net passive loss - i.e., the sum of Lines 1, 10 and 11F of your K-1 is negatie - generally, you should not report that loss on your federal or state tax returns unless you disposed of ALL your interest in EPD prior to January 1, 2014 in a fully taxable transaction.

If you are a foreign person, you may have received IRS For1042-S, Foreign Persons U.S. Source Income Subject to Withholding. ni Please follow the instructions for that form.

The enclosed Partner instructions are provided for your gener I information, and are not intended to be, nor should they be construed as, tax advice. The tax information discussed in this package a d reflected on the schedules provided to you is based on existing federal and state laws and regulations as interpreted by the General artner. Before undertaking any tax filing, we suggest that you refer to the appropriate federal and state income tax laws or consult your personal tax advisor.

Any corrections to this information or any other information reflected in this package must be submitted to the Partnership by May 15, 2014. In any one of the following ways:

1. Mail to Enterprise Products Partners, LP, Attention: Tax Package Support, P.O. Box 799060, Dallas, TX 75379-9060;

2. Call Tax Package Support at 1-800-599-9985, or by fax at 1-866-554-3842; or

3. Submit corrections online through the Partnership's web re at www.enterpriseproducts.com. At this site, click K-1 Information, then www.taxpackagesupport.com/enterprise, which take you to the Partnership's Tax Reporting Package logon screen. See the comments above related to account registration at this site. The website allows you to transfer information to IRS tax forms or to download a file, which can be imported into Turbo Tax software. There you will be able to view your 2013 tax schedules, request changes to incorrect information, print your tax package tnd print blank IRS forms. At this site you can also register for electronic K-1 delivery, if you haven't already done so.

Failure to submit corrections by May 15, 2014 may require you to file in your federal income tax return IRS Form 8082 - "Notice of Inconsistent Treatment or Administrative Adjustment".

Thank you for your investment in EPD.

Sincerely,

Enterprise Products Partners, LP

IMPORTANT NOTICE: The information in the enclosed tax package is •rovided by the Partnership to assist you in preparing your personal tax return. The information reflects the application of various assumptions and conventio s, as disclosed by the Partnership in various SEC filings and other offering documents. It is anticipated that the Partnership may provide disclosure of certain of the e assumptions and conventions in the preparation of the Partnership return as warranted by the IRS and/or other taxing authorities. We suggest that your refer t• the appropriate federal and state income tax laws, instructions, SEC filings and other offering documents, and that you consult your tax advisor with any quest ons. You should discuss with your tax advisor whether the treatment of any items in the enclosed tax package may subject you and/or your tax advisor to a pena ty by a taxing authority and the need to adequately disclose any items in order to avoid such penalty.

SAADG028

9127 0010 0 RP 16 02162014 YNNNNN 01 013679 0075

2013 TRANSACTIONS SCHEDULE

ENTERPRISE'

ENTERPRISE PRODUCTS PARTNERS L. P. (NYSE 1111111.11.111111MIP 111111111111111111. dajaMEINDIVIDUAL

76-0568219

PARTNER NAME:

ACCOUNT NUMBER:




:EPD)

NOTE: THIS TRANSACTIONS SCHEDULE IS NOT PROOF OF OWNERSHIP IN ENTERPRISE PRODUCTS PARTNERS L.P.

DESCRIPTION

TRANSACTION

DATE BROKER OR

UNITS AC BUY 09-17-2004

CERTIrCATE NUMBER 201 1,500.0000

AC BUY 11-22-2004 201 1,000.0000 AC BUY 01-05-2005 201 1,000.0000 AC BUY 02-09-2007 201 909.0000 AC BUY 02-09-2007 201 101.0000 AC BUY 04-18-2007 201 404.0000 AC BUY 04-18-2007 201 101.0000

END OF YEAR UNITS 5,015.0000

DO NOT INCLUDE THIS SCHEDULE WITH YOUR FEDERAL OR STATE INCOME TAX RETURNS

ACKNOWLEDGEMENT FOR CORRECTIONS ONLY

The information reported on this schedule, as corrected, accurately and completely presents my transaction history through 12/31/13.

Signature Daytime Phone Date SAADG029

Limited partner or other LLC • General partner or LLC

0.000535 % 0.000535 % 0.000535 %

Profit 0.000556 % Loss 0.000556 % Capital 0.000556 %

Schedule K-1 (Form 1065) Department of the Treasury Internal Revenue Service

Partner's Share of Income, Deductions, Credits, etc. ► See back of form and separate instructions.

Infft

'

*IQ HAPRIAtWOR

A Partnership's employer identification number

76-0568219

B Partnership's name, address, city, state, and ZIP code ENTERPRISE PRODUCTS PARTNERS L.P. PO BOX 4018 HOUSTON, TX 77210-4018

C

IRS Center where partnership filed return

Ogden, UT D la Check if this is a publicly traded partnership (PTP)

Part II AtifotbfatiokAtiolvoiemortow E Partner's identifying number

F Partner's name, address, city, state, and ZIP code

5111111111111116. TUCSON AZ 85739

member-manager member

H a Domestic partner ❑ Foreign partner


12 If this partner is a retirement plan (IRA/SEP/Keogh/etc.), check here (see instructions) ❑

J Partner's share of profit, loss, and capital (see instructions): Beginning Ending

K Partner's share of liabilities at year end:

Nonrecourse 132,176 Qualified nonrecourse financing $

Recourse

L Partner's capital account analysis:

Beginning capital account . . . $ 10,026 Capital contributed during the year $ 0

Current year increase (decrease) . $ -135 Withdrawals & distributions (13,541) Ending capital account . . -3,650

Tax basis ❑ GAAP 0 Section 704(b) book

0 Other (explain)


1:1 Yes No If "Yes," attach statement (see instructions)

1 Ordinary business income (loss)

-317 15 Credits

2 Net rental real estate income (loss)

3 Other net rental income (loss) 16 Foreign transactions

4 Guaranteed payments

5 Interest income

4 6a Ordinary dividends

0

6b Qualified dividends

0

7 Royalties

8 Net short-term capital gain (loss)

9a Net long-term capital gain (loss) 17 Alternative minimum tax (AMT) items

0 A -901 9b Collectibles (28%) gain (loss)

9c Unrecaptured section 1250 gain

10 Net section 1231 gain (loss)

192 18 i Tax-exempt income and

nondeductible expenses

11 Other income (loss) C 14 C 0

F* 0

19 Distributions

12 Section 179 deduction A 13,541

13 Other deductions

T* STMT 20 Other information

A 4

V -317 14 Self-employment earnings (loss)

X* 123

Z* STMT *See attached statement for additional information.

For I

RS

Use

Onl

y

Part I

2013 For calendar year 2013, or tax

year beginning

ending

, 2013

, 20

9127 0010 0 RP 16 02162014 YNNNNN 01 013679 0075

0 Final K-1

651113 0 Amended K-1

OMB No. 1545-0099

For Paperwork Reduction Act Notice, see Instructions for Form 1065. IRS.gov/form1065 Schedule K-1 (Form 1065) 2013 cegrIpri,=

Cat. No. 11394R

9127 0010 0 RP 16 02162014 YNNNNN 01 013679 0075

Schedule K-1 (Form 1065) 2013 Page 2

This list identifies the codes used on Schedule K-1 for all partners and For detailed reporting and filing information, see the separate Partners

1. Ordinary business income (loss). Determine whether the income (loss) is passive or nonpassive and enter on your retum as follows.

Report on

provides summarized reporting information for Instructions for Schedule K-1 and the instructions

Code L Empowerment zone

employment credit

partners who file Form 1040. for your income tax return.

Report on

Passive loss See the Partner's Instructions M Credit for increasing research

Passive income Schedule E, line 28, column (g) Nonpassive loss Schedule E, line 28, column (h)

activities N Credit for employer social


Nonpassive income Schedule E, line 28, column (j) security and Medicare taxes

2. Net rental real estate income (loss) See the Partner's Instructions 0 Backup withholding

3. Other net rental income (loss) P Other credits

Net income Schedule E, line 28, column (g) 16. Foreign transactions Net loss See the Partner's Instructions A Name of country or U.S.

4. Guaranteed payments Schedule E, line 28, column 6) possession 5. Interest income Form 1040, line 8a B Gross income from all sources Form 1116, Part I

6a. Ordinary dividends Form 1040, line 9a C Gross income sourced at

6b. Qualified dividends Form 1040, line 9b partner level 7. Royalties • Schedule E, line 4 Foreign gross income sourced at partnership level

8. Net short-term capital gain (loss) Schedule D, line 5 D Passive category

9a. Net long-term capital gain (loss) Schedule D, line 12 E General category } Form 1116, Part I 9b. Collectibles (28%) gain (loss) 28% Rate Gain Worksheet, line 4 F Other

(Schedule D instructions) Deductions allocated and apportioned at partner level

9c. Unrecaptured section 1250 gain See the Partner's Instructions G Interest expense Form 1116, Part I

10. Net section 1231 gain (loss) See the Partner's Instructions H Other Form 1116, Part I

11. Other income (loss) Code

Deductions allocated and apportioned at partnership level to foreign source income

A Other portfolio income (loss) See the Partner's Instructions I Passive category B Involuntary conversions See the Partner's Instructions J General category } Form 1116, Part I

C Sec. 1256 contracts & straddles Form 6781, line 1 K Other D Mining exploration costs recapture See Pub. 535 Other information

E Cancellation of debt Form 1040, line 21 or Form 982 L Total foreign taxes paid Form 1116, Part II

F Other income (loss) See the Partner's Instructions M Total foreign taxes accrued Form 1116, Part II

12. Section 179 deduction See the Partner's Instructions N Reduction in taxes available for credit Form 1116, line 12

13. Other deductions O Foreign trading gross receipts Form 8873 A Cash contributions (50%) P Extraterritorial income exclusion Form 8873 B Cash contributions (30%) Q Other foreign transactions See the Partner's Instructions C Noncash contributions (50%) 17. Alternative minimum tax (AMT) items D Noncash contributions (30%) See the Partner's A Post-1986 depreciation adjustment E Capital gain property to a 50% Instructions B Adjusted gain or loss See the Partner's

organization (30%) C Depletion (other than oil & gas) Instructions and F Capital gain property (20%) D Oil, gas, & geothermal—gross income the Instructions for G Contributions (100%) E Oil, gas, & geothermal—deductions Form 6251 H Investment interest expense Form 4952, line 1 F Other AMT items I Deductions—royalty income Schedule E, line 19 18. Tax-exempt income and nondeductible expenses

J Section 59(e)(2) expenditures See the Partner's Instructions A Tax-exempt interest income Form 1040, line 8b

K Deductions—portfolio (2% floor) Schedule A, line 23 B Other tax-exempt income See the Partner's Instructions

L Deductions—portfolio (other) Schedule A, line 28 C Nondeductible expenses See the Partner's Instructions

M Amounts paid for medical insurance Schedule A, line 1 or Form 1040, lin 29 19. Distributions N Educational assistance benefits See the Partner's Instructions A Cash and marketable securities

O Dependent care benefits Form 2441, line 12 B Distribution subject to section 737 } See the Partner's Instructions

P Preproductive period expenses See the Partner's Instructions C Other property Q Commercial revitalization deduction See Form 8582 instructions 20. Other information

from rental real estate activities A Investment income Form 4952, line 4a R Pensions and IRAs See the Partner's Instructions B Investment expenses Form 4952, line 5 S Reforestation expense deduction See the Partner's Instructions C Fuel tax credit information Form 4136 T Domestic production activities See Form 8903 instructions

information D Qualified rehabilitation expenditures See the Partner's Instructions

(other than rental real estate) U Qualified production activities income Form 8903, line 7b E Basis of energy property See the Partner's Instructions V Employer's Form W-2 wages Form 8903, line 17 F Recapture of low-income housing Form 8611, line 8 W Other deductions See the Partner's Instructions credit (section 42(j)(5))

14. Setf-employment earnings (loss) G Recapture of low-income housing Form 8611, line 8

Note. If you have a section 179 deduction or any partner-level deductions, see Partner's Instructions before completing Schedule SE.

he credit (other) H Recapture of investment credit See Form 4255

A Net eamings (loss) from Schedule SE, Section A or B I Recapture of other credits See the Partner's Instructions

self-employment J Look-back interest—completed See Form 8697

B Gross farming or fishing income See the Partner's Instructions C Gross non-farm income See the Partner's Instructions

15. Credits

long-term contracts K Look-back interest—income forecast See Form 8866

method

A Low-income housing credit (section 42(j)(5)) from pre-2008 buildings

L Dispositions of property with section 179 deductions

M Recapture of section 179 deduction

B Low-income housing credit (other) from pre-2008 buildings

N Interest expense for corporate partners

C Low-income housing credit 0 Section 453(1)(3) information

(section 42(j)(5)) from P Section 453A(c) information

post-2007 buildings See the Partner's Instructions Q Section 1260(b) information

D Low-income housing credit R Interest allocable to production See the Partner's (other) from post-2007 buildings

expenditures Instructions S CCF nonqualified withdrawals


T Depletion information—oil and gas U Amortization of reforestation costs

F Other rental real estate credits V Unrelated business taxable income

G Other rental credits W Precontribution gain (loss)

H Undistributed capital gains credit Form 1040, line 71; check box a X Section 108(i) information

I Biofuel producer credit Y Net investment income

J Work opportunity credit K Disabled access credit

See the Partner's Instructions Z Other information

SA5DFO3G

76-0568219

/INDIVIDUAL

ENTERPRISE'

9127 0010 0 RP 16 02162014 YNNNNN 01 013679 0075

2013 STATE INFORMATION

ENTERPRISE PRODUCTS PARTNERS L. R (NYSE:EPD) PARTNER NAME:

PARTNER ACCOUNT NUMBER:




State Tax Information:

EPD has not attempted to determine for each unitholder whether resident or nonresident state tax returns should be filed. We recommend you consult your personal tax advisor on this matter.

As stated elsewhere in this tax package, if you have a net passive loss, you should not report that loss - for federal or state tax purposes - unless you disposed of ALL your interest in EPD in 2013.

(Due to rounding and other State Information

not agree to Federal totals) Federal and State differences, totals may

State

(1) Ordinary Business Income or

Loss (-) and Other Income or Loss(-)

(2) Portfolio Interest

Income

(3) Portfolio Dividend

Income

(4) Net Long -

Capital Gain or Term Loss (-)

(5) Net Section 1231 Gain or

Loss (-)

(6) Gross Receipts

(7) State Income

Tax •

AL -1 0 0 0 1 1,330 1 AR -1 0 0 o 1 1,204 0 AZ 0 0 0 o 0 307 0 CA -1 0 0 0 1 987 0 CO -2 0 0 0 2 2,056 1 CT 0 0 0 o 1 0 5 0 DE 0 0 0 o 1 0 3 0 FL 0 0 0 o 1 0 132 0 GA 0 0 0 0 0 403 0 IA 0 0 0 0 0 455 0 IL -1 0 0 o 1 1,232 1 IN -1 0 0 0 1 1 1,431 1 KS -2 0 0 0 2 2,718 1 KY 0 0 0 o 0 47 0 LA -28 0 0 0 26 34,825 14 MA 0 0 0 o 0 5 0 MD 0 0 0 o 1 0 57 0 MN 0 0 0 0 1 0 274 0 MO -1 0 0 o 1 1 744 0 MS -1 0 0 0 1 1,633 1 MT 0 0 0 o 0 594 0 NC 0 0 0 0' 0 509 0 ND -2 0 0 0 2 2,129 1 NE 0 0 0 o 0 207 0 NH 0 0 0 0: 0 8 0 NM -7 0 0 0 I 7 8,877 4 NY -1 0 0 0 i 1 1,160 0 OH -1 0 0 OF 1 809 0 OK -16 0 0 0 I 15 19,885 8 PA 0 0 0 OF 0 256 0 RI 0 0 0 o 1 0 109 0 SC 0 0 0 0 0 41 0 UT -1 0 0 0 1 894 0 VA 0 0 0 o 1 0 83 0 VT 0 0 0 o 1 0 8 0 WI 0 0 0 01 0 114 0 WV 0 0 0 o 1 0 8 0

*State taxes treated as state income taxes for federal income tax purposes.

DO NOT INCLUDE THIS SCHEDULE WITH YOUR FEDERAL OR STATE INCOME TAX RETURNS SAADGO2C

E 2013 SCHEDULE

ENTERPRISE'

ENTERPRISE PRODUCTS PARTNERS L. P. (NYSE:EPD)

9127 0010 0 RP 16 02162014 YNNNNN 01 013679 0075

K-1 SUPPLEMENTAL INFORMATION STATEMENT

PARTNER NAME: 111111111111.1111111111111101 PARTNER ACCOUNT NUMBER: -

PARTNER FEDERAL ID/ENTITY: 1011111fiRj/INDIVIDUAL CUSTODIAN FEDERAL ID: PARTNERSHIP FEDERAL ID: 76-0568219

K-1 CODES DESCRIPTION AMOUNT/SOURCE

11F 1 1 Other income (loss) 0 13T1 1 Domestic production gross receipts (DPGR) 97 13T2 Cost of goods sold allocable to DPGR 17 13T3 Total deductions, expenses, and losses directly allocable to DPGR 56 13T4 Other deductions, expenses, and losses Not directly allocable to DPGR 19,596 13T5 Employer's W-2 wages 1 0 20X3 Section 108(i) Information I 123 20Z1 Gross receipts for UBTI i 258,348 20Z2 Gross deductions for UBTI 258,663 20Z3 Bonus depreciation adjustment for most nonconforming states 5,078 20Z4 Nontaxable adjustment to capital account 0

NOTE: For item 20Y Net Investment Income please see the information on this item

Individualized Income Tax Reporting Instructions for additional

SA1 EG03E

Documents

PTPs, MLPs AND THEIR pESKY k-1S - SACEAsacea.org/education/PTPs.pdf · A publicly traded partnership is any ... partnerships. P a r t n e r s h i p C o r p o r a t i o n PTP/MPL Benefits