I was starting my tazes over the weekend. I noticed that my dividends from BPT are not listed as dividends at all but rather as Royalties! Dividends qualify for the favorable tax treatment 915%) but I believe Royalty payments are taxed at a higher rate although I can't actually find the rate.
Can anyone else commewnt on this?
You're right that these "dividends" are royalties, and not subject to the lower tax on qualified dividends. However, a percentage of income is offset by depletion. This is detailed in an annual booklet sent out by the Bank of New York. (It took me four years to figure out how to properly report this on Schedule E).