Disposing of MLP units is tax-complicated.

If you sell, the MLP will have to tell you how much of any gain is capital gains, how much is recaptured Sec. 1245 depreciation and some past energy credits (ordinary income) and how much, if any, offseting cummulative losses that can be used against the gains.

If you gift the MLP units to another person, all basis and holding period should transfer. Remember, your aquisition basis is not the basis at disposition. Your adjusted basis will be aquisition plus transaction fees less all past return of capital.

If you donate shares to a qualifying charity, I have seen two points of view on this. The first says that the donation amount is the fair market value just like any other donation. The second, and I think correct view, is that the FMV must be adjusted down for any gain on disposition that is attributable to ordinary income. This would include Sec. 1245 personal property depreciation and, if applicable, any short term capital gains.

As the limited partner, it is up to you to notify the MLP of the donation or gift...your brokerage will generally not do this for you.

BruceM