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Hi Ken-

On my "2002 Individualized Income Tax Reporting Package and Instructions" sheet from Amerigas (operates nationally) it has the unhelpful item in the FAQ:

Q: Do I have to file tax returns in any state in which I do not live?

A: Certain states require unitholders to file tax returns in states in which the Partnership operates. You should consult your tax advisor regarding the need to file state tax returns.

Lot of help that was!

However an earlier FAQ item was:

Q: How is my basis effected by cash distributions and partnership net income?

A: The cash distributions you receive are a return of capital and decrease your basis in the partnership. At the end of the year your basis is increased by your share of the partnership's taxable income allocated on your Schedule K-1
(very small.)

Might this mean that since it is a return of capital, no state taxes are owed anywhere?

Thanks for the help.


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