When units are sold for cash on the TSX, or are transferred to a new owner (for example, transferring from a single client name to a joint tenants with rights of survivorship), 50% of the resulting capital gain must be reported as taxable income, as outlined in the Tax Act.

If a limited partner transfers the units he or she holds to a Self-Directed Registered Plan, this is also considered a deemed disposition; however, 100% of the resulting capital gain is subject to tax.

Tax treatment of capital gains or losses is found in "Income Tax Considerations – Disposition of Master LP Units" of the Information Circular.

To assist you in calculating the Adjusted Cost Base (ACB) of your MMLP units, please use the "ACB Calculation Worksheet and Instructions." You can use this to determine if you've incurred a capital gain or capital loss.

Tax receipts, T5013 "Statement of Partnership Income," are normally sent by the end of March. Please contact your financial advisor or securities broker if you have not received your tax receipt.