Message Font: Serif | Sans-Serif
No. of Recommendations: 0
My understanding of my Stonemore MLP distributions is that it reduces basis...i.e. not reported until the position is closed.

That's an incomplete answer. Generally, the cash distributions do just that, but if you've recovered all of your basis, any additional cash distribution is taxable gain when received. The bigger problem is that you've ignored the part where you have to report and pay tax on all of the various items reported on the K-1 you receive each year - and use them to adjust your basis as well.

Print the post  


In accordance with IRS Circular 230, you cannot use the contents of any post on The Motley Fool's message boards to avoid tax-related penalties under the Internal Revenue Code or applicable state or local tax law provisions.
What was Your Dumbest Investment?
Share it with us -- and learn from others' stories of flubs.
When Life Gives You Lemons
We all have had hardships and made poor decisions. The important thing is how we respond and grow. Read the story of a Fool who started from nothing, and looks to gain everything.
Contact Us
Contact Customer Service and other Fool departments here.
Work for Fools?
Winner of the Washingtonian great places to work, and Glassdoor #1 Company to Work For 2015! Have access to all of TMF's online and email products for FREE, and be paid for your contributions to TMF! Click the link and start your Fool career.