weinbecb
New Member

Investors & landlords

Tell me if I am wrong,  but if you want to continue holding your MLP after your adjusted basis falls to zero, you should report distributions as long term capital gain on line 12 of Sched D and supplemental losses (mainly box 1) as losses on the same line 12.   If these balance each other you can continue to avoid taxation of your distributions as ordinary gain, with no tax outlay.