Mergers of partnerships are tax-deferred. Depending on how they handle the cash, even that part could be tax-deferred. But I would have thought that for most PVR holders, the tax deferral isn't that meaningful. I guess if you've held long enough, your basis could be pretty low and your ordinary income potential could be high. But for people that bought in the last year or 2, I wouldn't think the tax issue would be that meaningful.
cash is usually taxable as it does not represent continuing ownership when received-so cash may be treated as a sale of the units (stock) and as with any mlp could have very negative and unexpected tax results
stock received usually represents continuing ownership
Yeah, the stock exchange part will be tax free----assuming you don't sell the sales you get. The cash part tax bill will depend on how its structured/categorized in the eyes of the IRS. Someone who owned CMLP may be able to tell us what the tax significance of the $1.03 cash payment in that deal was.