Sale of MLP stock

[PGW1]

I bought an MLP stock in June 2025 and sold it  today, 7/18/2025 and never received a dividend payment. I did however have a $49 gain on the sale. Will I get a K1 for that gain or a 1099?

[NCperson]

the gain on sale would be reported on a 1099-B from your broker

[Mike9241]

you will get a 2025 k-1 with a report as to the correct tax basis to use and any depreciation recapture 

your real gain is sales price less (purchase price + income - losses and deductions. plus any depreciation recapture as ordinary income). the 1099-B will not have the correct info because it does not adjust for partnership activity. 

[PGW1]

Thanks for the answer but am a little confused. I purchased the stock 6/25/25 and owned it less than a month once I realized it was an MLP. I received no dividends or other income while I owned it so am confused why  a 1099 wouldn't show the correct information in this case.

[Mike9241]

you bought into a partnership. under partnership tax rules its income/loss is allocated on a per share/per day basis so you will be receiving a k-1  (that's how a partnership reports the results to its partners, and the IRS gets a copy) that will report your share of income or loss for the period you held it. that income or loss affects your tax basis. However, the broker receives no partnership information and so cannot properly adjust the basis it reports on the 1099-B. as a matter of fact the type on the 1099-B will be type B - proceeds but not tax basis reported to the IRS.   the k-1 package will include a supplemental schedule to allow you to correctly report the gain or loss on sale. if you don't include the k-1 on your tax return, you might get a letter from the IRS which could be a few years after filing. it may also be true that the income loss is so small the IRS won't bother you if you don't report it. no way to know and i don't suggest or recommend not reporting taxable events.