Hello,
I have a question about selling an MLP holding. I've held an MLP for about eight year, and bought and sold it over this period, but depsite trading I have always had at least a small position. Today I just sold the last of my units, and I now have zero position in this MLP.
I understand that when an investor completely closes out an MLP holding there are certain tax issues which occur. Perhaps depreciation recapture is one of them, I'm not really sure, but I'm sure there are tax implications of selling ALL of an MLP as opposed to doing only a partial sale of an MLP holding.
So here's my question. Later in 2023 can I repurchase (anew!) this same MLP without any tax implications from the repurchase? In other words, if I decide to buy 100 units of the same MLP before year end, will the tax implications of selling out of ALL of my MLP units today be impacted? I know that the tax affect of the new units will appear on the K-1, but will repurchase affect the tax treatment of the trade which closed out the position completely during the year?
I hope that makes sense.
