Tax treatment of transfer of MLP units between spouses

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    ElroyTax
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    My wife and I own MLP units in three different regular brokerage accounts (her individual, my individual, and our jointly shared account). I want to consolidate the holdings into my wife’s individual accounts. The MLP units held in our joint account and in my account will be transferred into her account.

    Do you know how that will affect the K-1 reporting of the two accounts that lose their MLP units? I wonder if the two accounts which lose their MLP units to my wife’s account receive “end of life” K-1’s which incur the tax ramifications of “selling” an MLP, or not?
    With normal publicly traded stock there are not capital gains tax events resulting from the consolidation of positions into a single account) when the owners involved are married. Is there anything about MLPs which is a concern in regard to consolidation of holdings between married people? Will the two accounts which lose MLP units be treated as having sold the units (bad) or treated as having conducted a tax free transfer between spouses?

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