2023 Unit Distributions U.S. Tax Treatment
Navios Maritime Partners L.P. has elected to be treated as a 'C' Corporation for U.S. tax purposes (our investors receive a Form 1099-DIV and not a Schedule K-1).
The table below describes the distributions made by the entity in 2023 and the reporting of such payments on United States Internal Revenue Service ("IRS") Form 1099-DIV.
The determination of the distribution percentages which constitute a taxable dividend or a nondividend distribution for U.S. federal income tax purposes is not made until after the end of the calendar year. If you are a U.S. unitholder and you received an IRS Form 1099-DIV that does not set forth such amounts, you should contact your broker or your tax advisor.
Unitholders are directed to consult their own tax advisors to determine the appropriate tax treatment with respect to the distributions.
| Date | Total Distribution (per common unit) | % Reported as Ordinary Dividend in Box 1a of Form 1099-DIV | % Reported as Qualified Dividend in Box 1b of Form 1099-DIV | % Reported as Nondividend Distribution in Box 3 of Form 1099-DIV |
|---|---|---|---|---|
| May 12, 2023 | $0.05 | 0% | 100% | 0% |
| Aug 11, 2023 | $0.05 | 0% | 100% | 0% |
| Nov 13, 2023 | $0.05 | 0% | 100% | 0% |
| Feb 14, 2024 | $0.05 | 0% | 100% | 0% |
| Total 2023 | $0.20 | 0% | 100% | 0% |
Disclaimer
This table and related comments are intended as general information only and do not constitute tax advice. This information was not written or intended to be used, and it cannot be used, by any person as a basis for avoiding federal tax penalties that may be imposed on that person. Unitholders should consult their own tax advisors with respect to the specific tax consequences to them. Navios Maritime Partners L.P. makes no warranty either expressed or implied regarding any tax issues of its unit holders.
Report of Organizational Actions Affecting Basis of Securities
US tax law now requires that we file Form 8937 and furnish a statement to unit holders when we take an "organizational action" that affects the tax basis of our units. We made distributions during 2023, which we have determined with our advisors constitute dividends under the Internal Revenue Code. While we do not expect this to have an effect of reduction to unit holders' basis in units owned, we have filed Forms 8937 (a copy of which is available through the link below) and furnish these statements on our primary website in accordance with IRS regulations on a protective basis. Unit holders may have circumstances unique to them. Please consult your tax advisor.
* This updated form reflects a corrected typographical error correcting the dividend for February 14, 2019 from $0.2 to $0.02