Update: January 3, 2023
To comply with this new regulation, our broker partner DriveWealth has temporarily suspended trading of PTP securities while they implement the necessary mechanisms to enforce the tax withholding. This suspension in trading applies only to approximately 50 securities listed .
Since DriveWealth has made these securities inactive from January 3, 2022, it won’t be possible to buy or sell them via our platform. This also includes any of the Vests holding these securities, including All Weather. You can contact our support team if you wish to sell your holdings in any impacted securities or any Vests containing them. We will place an order on your behalf with DriveWealth.
Starting January 1, 2023, changes to how partnerships (“PTPs”) report and pay tax on certain income from foreign sources will take effect under the U.S. Internal Revenue Section 1446(f). These changes, which were enacted as part of the Tax Cuts and Jobs Act of 2017, are designed to reduce the potential for tax avoidance and ensure that PTPs are correctly paying their fair share of taxes.
One significant change under Section 1446(f) is the implementation of withholding requirements for PTPs. Under the new rules, PTPs will be required to withhold and pay tax on certain income that is distributed to foreign partners. This includes not only income that is effectively connected to a trade or business in the United States but also all foreign-source income, regardless of whether it is effectively connected.
How does this impact me?
Withholding applies to PTPs held by non-U.S. tax residents (individuals and entities). If you are a non-U.S. tax resident, and if you have holdings in any of the PTPs listed below, starting January 1, 2023, gross proceeds from the sale of these PTPs will be subject to 10% withholding. This withholding will be reported on the year-end Form 1042-S, Foreign Person’s U.S. Source Income Subject to Withholding.
The list below identifies PTP securities that are available on Vested and will be subject to withholding under IRC Sec. 1446(f). Please note that this list of PTPs will be updated on a best-efforts basis and is subject to change without notice.
| Symbol | Company Name |
| AB | AllianceBernstein Holding LP |
| AGQ | ProShares Ultra Silver |
| AMLP | Alerian MLP ETF ALPS |
| ARLP | Alliance Resource Partners LP |
| BOIL | ProShares Ultra Bloomberg Natural Gas |
| BSM | Black Stone Minerals, L.P. |
| CAPL | CrossAmerica Partners LP |
| CEQP | Crestwood Equity Partners LP |
| CLMT | Calumet Specialty Products Partners LP |
| CODI | Compass Diversified Holdings |
| CORN | Teucrium Corn ETF |
| CPLP | Capital Product Partners LP |
| CQP | Cheniere Energy Partners LP |
| DBC | DB Commodity Tracking PowerShares |
| DCP | DCP Midstream LP |
| DKL | Delek Logistics Partners LP |
| DLNG | Dynagas LNG Partners LP |
| DMLP | Dorchester Minerals LP |
| EPD | Enterprise Products Partners L.P. |
| ET | Energy Transfer Equity, L.P. |
| EUO | ProShares UltraShort Euro ETF |
| FTAI | Fortress Transportation and Infrastructure Investors LLC |
| FUN | Cedar Fair LP |
| GBLI | Global Indemnity Group LLC |
| GEL | Genesis Energy LP |
| GLP | Global Partners LP |
| HEP | Holly Energy Partners LP |
| IEP | Icahn Enterprises, L.P. |
| KNOP | KNOT Offshore Partners LP |
| KOLD | ProShares UltraShort Bloomberg Natural Gas |
| MMP | Magellan Midstream Partners, L.P. |
| MPLX | MPLX LP |
| NEP | Nextera Energy Partners, LP |
| NGL | NGL Energy Partners LP |
| NMM | Navios Maritime Partners LP |
| NS | NuStar Energy LP |
| PAA | Plains All American Pipeline, L.P. |
| PBT | PERMIAN BASIN ROYALTY TRUST |
| SCO | ProShares UltraShort Bloomberg Crude Oil |
| SIRE | Sisecam Resources LP |
| SMLP | Summit Midstream Partners LP |
| SOYB | Teucrim Soybean Fund |
| SPH | Suburban Propane Partners LP |
| SPLP | Steel Partners Holdings LP |
| SUN | Sunoco LP |
| SVXY | Short VIX Short-Term Futures ProShares |
| TYG | TORTOISE ENERGY INFRASTRUCT |
| UAN | CVR PARTNERS LP |
| UCO | ProShares Ultra Bloomberg Crude Oil |
| UGL | ProShares Ultra Gold |
| USAC | USA Compression Partners LP |
| UVXY | ProShares Ultra VIX Short-Term Futures ETF |
| VIXY | VIX Short-Term Futures ProShares |
| WEAT | Teucrium Wheat ETF |
| WES | Western Midstream Partners LP |
| WLKP | Westlake Chemical Partners |
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Sign up nowOur team members at Vested may own investments in some of the aforementioned companies/assets. Different types of investments involve varying degrees of risk, and there can be no assurance that any specific investment or strategy will be suitable or profitable for an investor’s portfolio. Note that past performance is not indicative of future returns. Investing in the stock market carries risk; the value of your investment can go up, or down, returning less than your original investment. Tax laws are subject to change and may vary depending on your circumstances.
This article is meant to be informative and not to be taken as an investment advice, and may contain certain “forward-looking statements,” which may be identified by the use of such words as “believe,” “expect,” “anticipate,” “should,” “planned,” “estimated,” “potential” and other similar terms. Examples of forward-looking statements include, without limitation, estimates with respect to financial condition, market developments, and the success or lack of success of particular investments (and may include such words as “crash” or “collapse”). All are subject to various factors, including, without limitation, general and local economic conditions, changing levels of competition within certain industries and markets, changes in interest rates, changes in legislation or regulation, and other economic, competitive, governmental, regulatory and technological factors that could cause actual results to differ materially from projected results.
This video is meant to be informative and not to be taken as an investment advice and may contain certain “forward-looking statements” which may be identified by the use of such words as “believe”, “expect”, “anticipate”, “should”, “planned”, “estimated”, “potential” and other similar terms. Examples of forward-looking statements include, without limitation, estimates with respect to financial condition, market developments, and the success of or lack of success of particular investments (and may include such words as “crash” or “collapse”.) All are subject to various factors, including, without limitation, general and local economic conditions, changing levels of competition within certain industries and markets, changes in interest rates, changes in legislation or regulation, and other economic, competitive, governmental, regulatory and technological factors that could cause actual results to differ materially from projected results.