Publicly Traded Partnerships Taxation

Summary

This practice note discusses publicly traded partnerships (PTPs) and the U.S. federal income tax treatment of these entities. In general, PTPs are partnerships the equity interests of which can be regularly traded in a manner similar to the stock of public companies. After describing the general tax treatment of PTPs as corporations, which are assessed a double level of taxation, the note then discusses the definition of PTP, the qualifying income exception to the taxation of PTPs as corporations, the deduction for qualified PTP income enacted as part of the Tax Cuts and Jobs Act of 2017, and special withholding rules applicable to PTPs.