|ENTERPRISE PRODUCTS PARTNERS L P filed this Form 424B3 on 02/01/2018|
Certain Additional Payments
We do not intend to treat the possibility of the payment of additional amounts described in Description of the NotesOptional Redemption, as (i) giving rise to original issue discount or recognition of ordinary income on the sale or other taxable disposition of the notes or (ii) resulting in the notes being treated as contingent payment debt instruments under the applicable Treasury Regulations. It is possible that the IRS may take a different position, in which case a holder might be required to accrue interest at a higher rate than the stated interest rate and to treat as ordinary interest income any gain realized on the taxable disposition of the notes. The remainder of this discussion assumes that the notes are not contingent payment debt instruments.
The following summary applies to you only if you are a U.S. holder (as defined below).
Definition of a U.S. Holder
A U.S. holder is a beneficial owner of notes that is, for U.S. federal income tax purposes:
Taxation of Interest
Interest on your notes will be taxed as ordinary interest income. In addition:
Sale or Other Disposition of Notes
When you sell or otherwise dispose of your notes in a taxable transaction, you generally will recognize taxable gain or loss equal to the difference, if any, between:
Your adjusted tax basis in your notes generally will equal the amount you paid for the notes. Your gain or loss generally will be capital gain or loss and will be long-term capital gain or loss if at the time of the sale or other taxable disposition you have held the notes for more than one year. Subject to limited exceptions, your capital losses cannot be used to offset your ordinary income. If you are a non-corporate U.S. holder, your long- term capital gain currently is subject to preferential income tax rates.