Suppose I purchase 100 shares of BPT today @ $88.80/share. Thats $8880 investment, plus commision of $7. So my original cost basis is $8887.00.
Now from what I understand about MLP, every distribution lowers my cost basis. So after one year my cost basis would be $8887 - $692 = $8195. If I sell after one year and the price is $91.00. My gain would be taxed on $9093 (subtract commision) - $8195 = $898
Of the $692 I would receive during the year as distribution approximately 90% would not be taxed?
BPT's tax booklet is very good. If you are going to trade the stock as opposed to holding, you might want to consider buying in your IRA or 401k account, especially if you buy after the dividend and sell prior to ex-day. Then you are paying short term capital gains in a taxable account.