TC PipeLines, LP (the Partnership) is a publicly traded limited partnership which, as an entity, is generally not subject to federal or state income tax. Instead, partners are required to report their allocable share of the Partnership's items of taxable income, gain, deduction or loss in their individual income tax returns as though each partner had incurred such items directly.
The Partnership determines taxable income annually and allocates it to the unitholders in accordance with the Partnership agreement. Unitholders are required to include their share of the Partnership's taxable income in their income for tax purposes and add the amount to the tax basis of their units. The amount allocated may exceed or be less than the amount of cash distributed in the year. Generally, cash distributions are considered a return of capital and reduce the tax basis of a limited partner's units.
The Tax Cuts and Jobs Act of 2017 created a new deduction (Section 199A) to effectively reduce the tax rate for certain taxpayers with respect to specific types of business income. The Partnership generates income that is eligible for the new deduction and the corresponding lower effective tax rate. For individuals, trusts and estates holding units in the Partnership, the amount reported on Line 20AD (Section 199A PTP Income) is crucial to claiming the new deduction. Consult your tax advisor concerning the impact of the tax law changes to you.
TC PipeLines, LP plans to mail 2018 Tax Packages to unitholders, including Schedule K-1 by March 5, 2019. We anticipate that unitholders may also access the 2018 K-1 information online beginning February 28, 2019, through our online K-1 reporting link:
A call center is available to assist TC PipeLines, LP unitholders with questions concerning information contained in their Schedule K-1. Please call K-1 Tax Package Support between 8:00 AM and 5:00 PM Central Time at this toll free number:
TC PipeLines, LP will not be preparing any partnership tax reporting information that may be required for jurisdictions outside of the United States.
2018 Annual Report
If you would like to receive an Investor Packet from TC PipeLines, LP, send your name and address to:
Contact Investor Relations
If you would like additional information or have further questions:
Tel: 1-877-290-2772 (toll free)
Fax: (508) 871-7047