Hi @nexchap Thank you.
If I understood you correctly
- For the $1800 income I have in K1 form cell "11. Other income (loss): C $1800" : I need to pay tax with a 60% & 40% split (even though I have had them for more than one year)
- Then when I report my 1099B, I need to pay tax on the $500 gain (= Proceeds $7500 - Actual purchase cost $5000 - Cumulative adjustments to basis $2000)
So MLP really have a high tax rate with the 60% & 40% split.....whereas regular stock, I would only need to pay capital gain tax rate after holding them for one year.
