Question
Inherited MLP Interest - How to handle passive carryover losses?
I recently inherited an interest in a publicly-traded MLP. The asset had accrued passive losses carried over from prior years. Upon death, the units were transferred (not sold) into my account. What happens to the passive losses? For my deceased dad's account, he never sold the units so the passive losses don't appear to be captured there. For my account, I'm thinking my basis in the investment is simply the unit count times the unit price on the day of his death. Do passive losses evaporate upon death?
