nexchap-I'm back with my question about a partial sale of units in an MLP. I decided I better ask my tax accountant before getting a revised K-1. He seems to believe it doesn't make any difference to have the K-1 re-stated because he used the correct acquisition price for the shares we sold per the broker's statement. He said the large tax hit came because of the adjustment to the basis resulted in a large ordinary gain. The gain he booked on the return is the same as listed on the original K-1. Am I just not understanding a basic principal of MLPs? I would assume that the basis adjustment figures and resulting ordinary gain would be quite different for a restated K-1 showing sales of 6-yr.-old units )as opposed to the current incorrect one showing sale of the 16-yr. old units). He seems to be indicating that the basis adjustment wouldn't change. Is it the case that the amount of distributions attributed to recent shares are the same as the total distributions or something? I just don't get this at all.
