Skip to content

Unit Distributions Tax Treatment

The Partnership has elected to be treated as a C-Corporation for tax purposes (our investors receive the standard 1099 form and not a K-1 form).

The chart below describes the distributions made by Capital Product Partners L.P. during 2016 and the reporting of such payments on United States Internal Revenue Service ("IRS") Form 1099.

Please note that determination of whether payments constitute a dividend or a nondividend distribution is not made for U.S. federal income tax purposes until the end of the fiscal year. If you are a U.S. unitholder and you received an IRS Form 1099 that does not set forth such amounts, you should contact your broker or your tax advisor.

Holders are directed to consult their own tax advisors to determine the appropriate tax treatment with respect to the distributions.

Date Total Distribution (per common unit) Amount Reported as a Qualified Dividend (per common unit) % Reported as a Qualified Dividend Amount Reported as a Nondividend Distribution % Reported as a Nondividend Distribution
Feb. 12, 2016 $0.23850 $0.09886 41.45% $0.13964 58.55%
May 13, 2016 $0.07500 $0.03109 41.45% $0.04391 58.55%
Aug. 12, 2016 $0.07500 $0.03109 41.45% $0.04391 58.55%
Nov. 14, 2016 $0.07500 $0.03109 41.45% $0.04391 58.55%
Total 2016 $0.46350 $0.19212 41.45% $0.27138 58.55%
Date Total Distribution (per preferred unit) Amount Reported as a Qualified Dividend (per preferred unit) % Reported as a Qualified Dividend Amount Reported as a Nondividend Distribution % Reported as a Nondividend Distribution
Feb. 10, 2016 $0.21975 $0.09109 41.45% $0.12866 58.55%
May 10, 2016 $0.21375 $0.08860 41.45% $0.12515 58.55%
Aug. 10, 2016 $0.21375 $0.08860 41.45% $0.12515 58.55%
Nov. 10, 2016 $0.21375 $0.08860 41.45% $0.12515 58.55%
Total 2016 $0.86100 $0.35689 41.45% $0.50411 58.55%

Disclaimer

These charts and related comments are intended as general information only and do not constitute tax advice. This information was not written or intended to be used, and it cannot be used, by any person as a basis for avoiding federal tax penalties that may be imposed on that person. Unitholders should consult their own tax advisors with respect to the specific tax consequences to them. Capital Product Partners L.P. makes no warranty either expressed or implied regarding any tax issues of its unitholders. The amounts of total distribution paid have been provided by us to our transfer agent.

Report of Organizational Actions Affecting Basis of Securities

Under U.S. tax law, Capital Product Partners, L.P. is required to file Form 8937 and furnish a statement to its unitholders upon taking an organizational action that affects the U.S. tax basis of its unitholders in their units. Capital Product Partners, L.P. has made certain distributions that may have had the effect of reducing the U.S. tax basis of unitholders in their units or required the recognition of gain. In accordance with applicable IRS rules, Forms 8937 in respect of such distributions are provided in the links below.

Unitholders should consult their own tax advisors regarding the U.S. federal income tax consequences of receiving distributions from Capital Product Partners, L.P.

Form 8937 - 2011

Form 8937 - 2012

Form 8937 - 2013

Form 8937 - 2014

Form 8937 - 2015

Form 8937 - 2016