We have 1,000 share of EPD that we've owned for over 10 years and would like to donate the to our local community foundation, who has agreed to take the units. We understand the charitable donation will NOT be the standard FMV on date of gift since this is an MLP, and that is fine.
Purchase Price $22k
Current value: $19k
Current adjusted basis is $0
Cumulative Passive Losses: $9k
QUESTION: If we make the gift will there be any income that we (the donors) have to report on our return? (In my online research there was one statement without explanation stating that if there was MLP debt then the donor may be liable for taxes).
FYI, controlling modified adjusted income is important to us and thus the reason we are sensitive to whether any income will need to be reported.
Thank you!
