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Question
A master limited partnership I purchased for $10,000 this year is being purchase for 50% stock and 50% cash. Is the cash considered a distribution?\n
AI accountant’s answer:
No, the cash you receive from the sale of your master limited partnership (MLP) isn't considered a distribution. Instead, it's part of the sales proceeds. You'll need to calculate your gain or loss on the sale, which is generally the difference between your sales proceeds (cash plus the fair market value of the stock you receive) and your original purchase price. This could result in a capital gain or loss, which you'll report on your tax return.
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