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Tax Implications of Shorting a Publicly Traded Limited Partnership (U.S.)


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Posted

Hello,

 

Has anyone ever shorted a U.S. listed publicly traded limited partnership? I am wondering what the tax implications of this are. Do you receive something like a k-1? I just don't know how you'd adjust your basis each year (assuming I believe my short candidate is a terminal short).

 

Thank you for any thoughts that you may have.

Guest deepValue
Posted

Not sure about tax implications, but MLPs are a miserable short; hard to borrow and big fat dividends.

Posted

Not sure about tax implications, but MLPs are a miserable short; hard to borrow and big fat dividends.

 

Agree on that. Actually looking at the LP's that invest in commodity futures. They don't make distributions to holders.

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