Does PAA issue a K-1 or a 1099?

PAA (Plains All American Pipeline LP) issues a Schedule K-1. PAGP (Plains GP Holdings) issues a 1099-DIV — it elected corporate tax treatment. These are DIFFERENT securities. Check your brokerage statement to confirm which one you own.

What's the difference between PAA and PAGP?

PAA is the limited partnership — you receive a K-1, distributions reduce your cost basis, and you face §751 recapture at sale. PAGP elected corporate treatment — you receive a 1099-DIV, distributions are classified as dividends or ROC, and there is no §751 recapture. Both trade on Nasdaq.

How do PAA distributions affect my cost basis?

PAA's 2025 total distribution was approximately $1.5575/unit. Historically 80-95% of PAA distributions are return of capital. PAA's distribution history is non-linear (cut 50% in 2020, gradually restored), so cumulative basis erosion depends on which years you held.

What happened to PAA's distribution during COVID?

PAA cut its distribution from $0.36/quarter to $0.18/quarter in Q2 2020 — a 50% reduction. It was gradually restored over 2021-2025, reaching $0.4175/quarter by Q4 2025. Long-term holders have a non-linear basis erosion pattern.

Do I need to file state taxes for owning PAA?

Potentially. PAA operates across Texas (no income tax), Oklahoma, Kansas, California, Louisiana, Wyoming, and has Canadian operations. Because PAA is heavily weighted toward Texas, most small unitholders have fewer state filing obligations than with income-tax-heavy MLPs.

How do I know if I own PAA or PAGP?

Check your brokerage statement for the ticker symbol. PAA (Plains All American Pipeline LP) is the partnership that issues a K-1. PAGP (Plains GP Holdings) elected corporate tax treatment and issues a 1099-DIV. Both trade on Nasdaq under similar names, but they are different securities with entirely different tax reporting.

Can I use a flat rate to estimate my PAA basis erosion?

No. PAA cut its distribution 50% in Q2 2020 and gradually restored it over 2021-2025. The distribution changed 4+ times in 5 years, making flat-rate estimates unreliable. You need each year's actual K-1 data to calculate your correct IRS-adjusted basis.

Did PAA's distribution cut during COVID help my tax situation?

Not necessarily. While the lower distribution slowed basis erosion during the cut period, the subsequent restoration accelerated it again. The non-linear pattern means your cumulative basis erosion depends entirely on which years you held and the actual K-1 data for each year.

PAA K-1 2025: Plains All American Basis & Tax Guide

Q: When is the PAA K-1 available for 2025?

PAA 2025 K-1s are expected online on or before February 28, 2026. Download at taxpackagesupport.com/plainsallamerican. Phone: (866) 872-2829.

Yes, Plains All American Pipeline (PAA) issues a Schedule K-1 — but Plains GP Holdings (PAGP) does not. These are different securities with different tax reporting, and most investors don't realize which one they own. PAA 2025 K-1 tax packages are expected online on or before February 28, 2026.

By Lucas Andersen — Last updated March 6, 2026

PAA vs PAGP: Which One Do You Own?

PAA (Plains All American Pipeline LP) issues a K-1. PAGP (Plains GP Holdings) issues a 1099-DIV — it elected corporate tax treatment. Both trade on Nasdaq under similar names. PAA unitholders must track cost basis and face §751 recapture. PAGP holders do not. Check your brokerage statement to confirm which one you own.

PAGP 2026 Tax Alert

Due to Plains’ pending NGL assets sale, PAGP expects to report positive current earnings and profits for tax year 2026. Part of its distribution will be taxable as a dividend — not return of capital. This is a 2026 tax event, but investors holding PAGP assuming pure ROC treatment should plan now.

2025 K-1 Release Date

PAA 2025 K-1s expected on or before February 28, 2026. Download at taxpackagesupport.com/plainsallamerican. Phone: (866) 872-2829. Plains also offers a gain/loss calculator at taxpackagesupport.com for computing sale basis.

Distribution History: Non-Linear Basis Erosion

PAA cut its distribution 50% in Q2 2020 ($0.36 → $0.18/quarter), then gradually restored it. Q4 2025 reached $0.4175/quarter ($1.67 annualized) — a 10% increase. 2025 full-year total: approximately $1.5575/unit. Distributions are historically 80–95% return of capital — verify against your actual K-1. This non-linear distribution history means each year’s K-1 is essential for accurate basis tracking.

Worked Example: 400 Units at $22 (2019–2025)

Initial basis: $8,800. After 7 years of variable distributions (pre-cut $1.44/yr, cut to $0.72/yr, gradual recovery to $1.5575/yr), IRS-adjusted basis drops to approximately $6,280. Broker still shows $8,800. Gap: $2,520 (29%). The non-linear pattern: erosion was ~$480 in 2019, slowed to ~$240/yr during the cut, then accelerated to ~$500+ by 2025.

§751 Recapture and State Filing

PAA owns $8B+ in depreciable assets. §751 recapture at sale: 30–50% of gain as ordinary income. Operating states: Texas (no income tax), Oklahoma, Kansas, California, Louisiana, Wyoming, plus Canadian operations.

Common PAA Mistakes

Not knowing whether you hold PAA or PAGP. Using a flat rate to estimate basis erosion (distribution changed 4+ times in 5 years). Assuming the distribution cut “helped” your tax situation. Both PAA and PAGP trade on Nasdaq, not NYSE.