What is PTP?
A PTP (publicly traded partnership) is a commercial entity held by two or more co-owners whose shares are listed on a securities market. Just think of them like an ETF but with a different tax structure.
On the surface, PTPs trade like stocks on major U.S. and global markets and are frequently indistinguishable from equities and ETFs, which is why you may be holding them without realizing it. However, there are differences between them, and if you are holding on to PTPs, you need to note specific tax implications.
What is the new regulation about?
The U.S. Internal Revenue Section has introduced Section 1446(f) with effect from 01/01/2023, which states how publicly traded partnerships (“PTPs”) should report and pay taxes on certain income from foreign sources. These changes have been brought about to ensure that PTPs are not avoiding tax and pay their taxes accurately.
A publicly traded partnership (PTP) is any partnership with interests in the partnership that are traded on an established securities market or with interests in the partnership that are readily tradable on a secondary market or its substantial equivalent.
With effect from 3rd January 2023, Publicly Traded Partnership (PTP) securities sold by non-US holders will be subject to a 10% withholding tax on the sales proceeds from this investment.
What is the impact of this regulation?
You can find the list of the PTP securities impacted here.
|Please note that this list of PTPs will be updated on a best-efforts basis and is subject to change without notice.|
|ET||ENERGY TRANSFER L P COM UT LTD PTN|
|EPD||ENTERPRISE PRODS PARTNERS L P COM|
|UCO||PROSHARES TR II ULTA BLMBG 2017|
|UVXY||PROSHARES TR II ULTRA VIX SHORT|
|MPLX||MPLX LP COM UNIT REP LTD|
|BOIL||PROSHARES TR II ULTRA BLOOMBERG|
|IEP||ICAHN ENTERPRISES LP DEPOSITARY UNIT|
|PAA||PLAINS ALL AMERN PIPELINE L P UNIT LTD PARTN|
|DBC||INVESCO DB COMMDY INDX TRCK FD UNIT|
|WEAT||TEUCRIUM COMMODITY TR WHEAT FD|
|MMP||MAGELLAN MIDSTREAM PRTNRS LP COM UNIT RP LP|
|AGQ||PROSHARES TR II ULTRA SILVER NEW|
|VIXY||PROSHARES TR II VIX SH TRM FUTRS|
|CORN||TEUCRIUM COMMODITY TR CORN FD SHS|
|ARLP||ALLIANCE RESOURCE PARTNERS L P UT LTD PART|
|AB||ALLIANCEBERNSTEIN HLDG L P UNIT LTD PARTN|
|EUO||PROSHARES TR II ULTRASHRT EURO|
|NGL||NGL ENERGY PARTNERS LP COM UNIT REPST|
|BSM||BLACK STONE MINERALS L P COM UNIT|
|SOYB||TEUCRIUM COMMODITY TR SOYBEAN FD|
|CEQP||CRESTWOOD EQUITY PARTNERS LP UNIT LTD PARTNER|
|USAC||USA COMPRESSION PARTNERS LP COMUNIT LTDPAR|
|GEL||GENESIS ENERGY L P UNIT LTD PARTN|
|GLP||GLOBAL PARTNERS LP COM UNITS|
|NS||NUSTAR ENERGY LP UNIT COM|
|SUN||SUNOCO LP/SUNOCO FIN CORP COM UT REP LP|
|CQP||CHENIERE ENERGY PARTNERS LP COM UNIT|
|UAN||CVR PARTNERS LP COM|
|FTAI||FORTRESS TRANS INFRST INVS LLC CL A COM SHS|
|UGL||PROSHARES TR II ULTRA GOLD|
|SVXY||PROSHARES TR II SHT VIX ST TRM|
|SPH||SUBURBAN PROPANE PARTNERS L P UNIT LTD PARTN|
|DCP||DCP MIDSTREAM LP COM UT LTD PTN|
|WES||WESTERN MIDSTREAM PARTNERS LP COM UNIT LP INT|
|SMLP||SUMMIT MIDSTREAM PARTNERS LP COM UNIT LTD|
|WLKP||WESTLAKE CHEM PARTNERS LP COM UNIT RP LP|
|HEP||HOLLY ENERGY PARTNERS L P COM UT LTD PTN|
|DMLP||DORCHESTER MINERALS LP COM UNIT|
|SCO||PROSHARES TR II ULSHT BLOOMB OIL|
|SIRE||SISECAM RESOURCES LP COM UNIT LTD|
|DKL||DELEK LOGISTICS PARTNERS LP COM UNT RP INT|
|CAPL||CROSSAMERICA PARTNERS LP UT LTD PTN INT|
|FUN||CEDAR FAIR L P DEPOSITRY UNIT|
|SPLP||STEEL PARTNERS HLDGS L P LTD PRTRSHIP U|
|ATAX||GREYSTONE HOUSING IMPACT INVES BEN UNIT CTF|
|CLMT||CALUMET SPECIALTY PRODS PARTNE UT LTD PARTNER|
|GBLI||GLOBAL INDEMNITY GROUP LLC COM CL A|
|KOLD||PROSHARES TR II ULSHT BLOOMB GAS|
Support from Stockal
While DriveWealth is working on automating this solution. In the interim, if the customer wishes to sell any security, you will have to contact the Support Team.
In case you want to read more about the directive, you can read the same on the IRS portal or the Drivewealth portal.