Thank you again. Again, makes total sense. I like to try to understand what's going on rather than just importing the data from the MLP K-1.
I think the Adjustment to Basis reflects that part of the income stream you receive from the MLP is a return of capital. There is no taxable event from this returned capital until a sale. At that point the Cost Basis needs to be reduced by this returned capital. Is that correct?
I don't see what the source of Ordinary Gains are. On the K-1, Ordinary Income is a negative number. But from your explanation it could be something to do with depreciation recapture? I'm just curious to understand the mysterious seeming numbers that show up on the K-1 at a sale.
