Prior to the conversion from a limited partnership to a corporation on August 26, 2024, Capital Product Partners L.P. elected to be treated as a C-Corporation for tax purposes (our investors received the standard 1099 form and not a K-1 form).
The chart below describes the distributions made by Capital Product Partners L.P. during 2023 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 were 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. 10, 2023 | $0.15000 | $0.0962 | 64.15% | $0.0538 | 35.85% |
| May 12, 2023 | $0.15000 | $0.0962 | 64.15% | $0.0538 | 35.85% |
| Aug. 8, 2023 | $0.15000 | $0.0962 | 64.15% | $0.0538 | 35.85% |
| Nov. 13, 2023 | $0.15000 | $0.0962 | 64.15% | $0.0538 | 35.85% |
| Total 2023 | $0.60000 | $0.3849 | 64.15% | $0.2151 | 35.85% |
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. Security holders should consult their own tax advisors with respect to the specific tax consequences to them. We make no warranty either expressed or implied regarding any tax issues of our security holders. 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, we are required to file Form 8937 and furnish a statement to our security holders upon taking an organizational action that affects the U.S. tax basis of our security holders in their securities. We have made certain distributions and taken certain actions that may have had the effect of reducing the U.S. tax basis of security holders in their securities or required the recognition of gain. In accordance with applicable IRS rules, Forms 8937 in respect of such actions are provided in the links below.
Security holders should consult their own tax advisors regarding the U.S. federal income tax consequences of receiving distributions from us.
DSSI Distribution Form 8937 - 2019
1-for-7 Reverse Unit Split Form 8937 - 2019
Conversion from Limited Partnership to Corporation Form 8937-2024