- 85% of the annual cash distribution to Targa (TRGP) common shareholders for tax year 2018 was a non-taxable return of capital.
Characterization of Distributions
Acquisition of Targa Resources Partners LP by Targa Resources Corp.
On February 17, 2016, Targa Resources Corp. (NYSE:TRGP) acquired all of the outstanding common units of Targa Resources Partners LP (NYSE: NGLS) that it did not already own (the “Merger”). All of NGLS's debt and preferred units outstanding at acquisition close remained outstanding.
- Tax Basis on the NGLS Merger – A U.S. holder’s tax basis in any shares of TRGP common stock received in the NGLS merger is $17.25 per share, which was the closing price of TRGP common stock on February 16, 2016. The transaction closed prior to market open on February 17, 2016.
- Holding Period on the NGLS Merger – A U.S. holder’s holding period for any shares of TRGP common stock received in the Merger on February 17, 2016, begins on February 17, 2016. The Merger closed prior to market open on February 17, 2016. Therefore, a shareholder that acquired shares of TRGP common stock in the Merger had the opportunity to sell those shares on February 17, 2016.
- Please note that Form 8937 is not applicable to the NGLS Merger and will not be filed.
For K-1 tax information click here.