Publicly Traded Partnership

Publicly Traded Partnership means:
a limited partnership (called PTP) formed under state partnership law where limited partnership interests are publicly traded on an established exchange or “over the counter”; also called a master limited partnership. Registration of interests in PTPs is required under federal securities laws. Publicly traded partnerships are treated as corporations for federal income tax purposes. There are certain exceptions to this treatment for partnerships that were in existence on December 17, 1987, or that meet the gross income requirements concerning passive-type income, which includes:

• interest.

• dividends.

• real property rental.

• disposition of real property.

• income from the exploration, development, and extraction of depletable products. Former IRC (check if this IRC provision is current here) §7704.

See also the entries Income Tax and State Income Tax in the American Encyclopedia of Law.

Partnership in the US that is listed and traded on an established stock exchange or a secondary market. With some exceptions, PTLPs are taxed in the US as corporations rather than partnerships.