Effective January 1, 2019 the Partnership has elected to be treated as a C-Corporation for United States (U.S.) federal income tax purposes (our investors receive the standard 1099 form, which is prepared by your broker, and not a K-1 form).
Distributions we pay to U.S. unitholders will be treated as a dividend for U.S. federal income tax purposes to the extent the distributions come from earnings and profits (E&P) and as a nondividend distribution or a return of capital (ROC) to the extent the distributions exceed E&P.
Distributions we pay to a non-U.S. unitholder will not be subject to U.S. federal income tax or withholding tax if the non-U.S. unitholder is not engaged in a U.S. trade or business.
In 2019, the Partnership did not engage in any trade or business in the U.S. Furthermore, the Partnership does not anticipate that it will engage in any trade or business in the U.S. in the foreseeable future. Any gains resulting from the transfer or sale of an equity ownership interest (including common and preferred units) in the Partnership by non-U.S. investors should not be subject to any U.S. withholding tax because the Partnership has elected to be treated as a C-Corporation for U.S. federal income tax purposes and because the Partnership does not engage in trade or business in the U.S. Specifically, the Partnership’s non-U.S. investors are not subject to a 10% withholding tax on the transfer or sale of an equity ownership interest (including common and preferred units) in the Partnership which may otherwise be applied to non-U.S. investors who invest in U.S. Partnerships that carry on business in the U.S. Each unitholder is urged to consult its tax advisor regarding the U.S. federal, state, local, non-U.S. and other tax consequences resulting from the ownership or disposition of our equity (including common and preferred units). Unitholders should also ensure that they comply with certification requirements (such as a W8-BEN) which may be requested by their broker or financial institution in order to minimize the possibility that U.S. FATCA withholding taxes could apply.
For more detailed tax commentary, please refer to the most recent 20-F for Teekay LNG Partners L.P. (Teekay LNG).
The chart below describes the total distributions made by Teekay LNG in 2019 and the reporting of such distributions on United States Internal Revenue Service (IRS) Form 1099.
Please note that the determination of whether these distributions constitute a dividend from E&P or a ROC 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 tax advisor.
Holders are directed to consult their own tax advisors to determine the appropriate tax treatment with respect to the distributions.
Common Units
|
Record |
Total Distribution |
Amount Reported as a Qualified Dividend in Item 1 (b) of Form 1099 |
% Reported as a Qualified Dividend in Item 1 (b) of Form 1099 |
Amount Reported as a Nondividend distribution in Item 3 of Form 1099 |
% Reported as a Nondividend Distribution in Item 3 of Form 1099 |
|
02/01/2019 |
$10,996,345 |
$5,540,540 |
50.4% |
$5,455,805 |
49.6% |
|
05/07/2019 |
$14,939,017 |
$4,402,911 |
29.5% |
$10,536,106 |
70.5% |
|
08/06/2019 |
$14,880,685 |
$4,373,521 |
29.4% |
$10,507,164 |
70.6% |
|
11/01/2019 |
$14,726,268 |
$4,295,717 |
29.2% |
$10,430,551 |
70.8% |
Series A Preferred Units
|
Record |
Total Distribution |
Amount Reported as a Qualified Dividend in Item 1 (b) of Form 1099 |
% Reported as a Qualified Dividend in Item 1 (b) of Form 1099 |
Amount Reported as a Nondividend distribution in Item 3 of Form 1099 |
% Reported as a Nondividend Distribution in Item 3 of Form 1099 |
|
03/29/2019 |
$2,812,500 |
$2,812,500 |
100.0% |
$ 0 |
0.0% |
|
06/28/2019 |
$2,812,500 |
$2,812,500 |
100.0% |
$ 0 |
0.0% |
|
09/30/2019 |
$2,812,500 |
$2,812,500 |
100.0% |
$ 0 |
0.0% |
Series B Preferred Units
|
Record |
Total Distribution |
Amount Reported as a Qualified Dividend in Item 1 (b) of Form 1099 |
% Reported as a Qualified Dividend in Item 1 (b) of Form 1099 |
Amount Reported as a Nondividend distribution in Item 3 of Form 1099 |
% Reported as a Nondividend Distribution in Item 3 of Form 1099 |
|
03/29/2019 |
$3,612,840 |
$3,612,840 |
100.0% |
$ 0 |
0.0% |
|
06/28/2019 |
$3,612,840 |
$3,612,840 |
100.0% |
$ 0 |
0.0% |
|
09/30/2019 |
$3,612,840 |
$3,612,840 |
100.0% |
$0 |
0.0% |
Disclaimer
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.
Teekay LNG Partners LP makes no warranty either expressed or implied regarding any tax issues of its unitholders.
-
- 2019
- 2018
- 2017
- 2016
- 2015
- 2014
IRC §6045B Reporting
Attachment: Form 8937 – 2019
Teekay GP LLC, the general partner of Teekay LNG Partners L.P. (Teekay LNG) (NYSE: TGP), declared cash distributions to the common unitholders of record for the quarters ended December 31, 2018, March 31, 2019, June 30, 2019, and September 30, 2019 as follows:
|
Date Declared: |
Date of Record: |
Amount per Unit: |
Date Paid: |
|
January 8, 2019 |
February 1, 2019 |
$0.14 |
February 8, 2019 |
|
April 24, 2019 |
May 7, 2019 |
$0.19 |
May 15, 2019 |
|
July 19, 2019 |
August 6, 2019 |
$0.19 |
August 14, 2019 |
|
October 21, 2019 |
November 1, 2019 |
$0.19 |
November 14, 2019 |
Pursuant to Internal Revenue Code Section 6045B, the attached Form 8937 summarizes to all unitholders of record the character of these distributions based upon Teekay LNG’s estimated earnings and profits as of the date of distribution.
We encourage holders of record to consult their Tax Advisor for the proper treatment of any Teekay LNG distribution in their tax return.
None of the distributions by the Partnership in 2018 will include any “effectively connected income”. This statement constitutes a “qualified notice” as provided in the Internal Revenue Code and Regulations thereunder.
2018 K-1 Distribution
The 2018 tax package is now available online and was mailed out on March 23, 2019.
Tax information for 2018 is now available online.
Click here to access Teekay LNG Partners LP K-1s online.
K-1 Helpline
If you have any further questions regarding your K-1 package, please call our K-1 Helpline at:
- Teekay LNG Partners L.P. Common Units – (866) 867-4071
- Teekay LNG Partners L.P. Series A Preferred Units – (844) 364-7563
- Teekay LNG Partners L.P. Series B Preferred Units – (844) 364-7563
None of the distributions by the Partnership in 2017 will include any “effectively connected income”. This statement constitutes a “qualified notice” as provided in the Internal Revenue Code and Regulations thereunder.
2017 K-1 Distribution
The 2017 tax package is now available online as at March 19, 2018 and is in the process of being mailed out.
Tax information for 2017 is now available online.
Click here to access Teekay LNG Partners LP K-1s online.K-1 Helpline
If you have any further questions regarding your K-1 package, please call our K-1 Helpline at:
- Teekay LNG Partners L.P. Common Units – (866) 867-4071
- Teekay LNG Partners L.P. Series A Preferred Units – (844) 364-7563
- Teekay LNG Partners L.P. Series B Preferred Units – (844) 364-7563
Teekay LNG Series A Preferred Units – tax treatment of distributions
For tax purposes only, Teekay LNG intends to treat distributions on the Series A Preferred Units as “guaranteed payments for the use of capital”, which generally will be 100% taxable to the holders of Series A Preferred Units as ordinary income. For more detail, please refer to the prospectus supplement dated September 28, 2016 and filed with the US Securities and Exchange Commission on September 30, 2016, including limitations regarding the applicability of this information. This anticipated treatment may change for circumstances arising after the date of the prospectus supplement.
Teekay LNG Series B Preferred Units – tax treatment of distributions
For tax purposes only, Teekay LNG intends to treat distributions on the Series B Preferred Units as “guaranteed payments for the use of capital”, which generally will be 100% taxable to the holders of Series B Preferred Units as ordinary income. For more detail, please refer to the prospectus supplement dated October 16, 2017 and filed with the US Securities and Exchange Commission on October 17, 2017, including limitations regarding the applicability of this information. This anticipated treatment may change for circumstances arising after the date of the prospectus supplement.
Access: K-1 tax information for 2016 is now available online.
Click here to access Teekay LNG Partners LP K-1s online.2016 K-1 Distribution
The 2016 tax package is now available online as at March 16, 2017 and is in the process of being mailed out.K-1 Helpline
If you have any further questions regarding your K-1 package, please call our K-1 Helpline at:- Teekay LNG Partners L.P. Common Units – (866) 867-4071
- Teekay LNG Partners L.P. Series A Preferred Units – (844) 364-7563