Company: SPH
Filing Date: 2025-02-12
Form Type: S-3
Source: 0001193125-25-024546
Chunk: 22

Company: SUBURBAN PROPANE PARTNERS LP
Filing Date: 2025-02-12
Form: S-3
Chunk 22
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 zero at the end of any taxable year. Losses disallowed to a unitholder or recaptured as a result of these limitations will carry forward and will be allowable as a deduction to the extent that the unitholder’s at-risk amount is subsequently increased, provided such losses do not exceed the unitholder’s tax basis. Upon the taxable disposition of a unit, any gain recognized by a unitholder can be offset by losses that
were previously suspended by the at-risk limitation but may not be offset by losses suspended by the basis limitation. Any loss previously suspended by the at-risk
limitation in excess of that gain would no longer be utilizable.

In general, a unitholder will be at risk to the extent of the
unitholder’s initial tax basis in our common units, excluding any portion of that basis attributable to the unitholder’s share of our nonrecourse liabilities, reduced by (i) any portion of that basis representing amounts otherwise
protected against loss because of a guarantee, stop loss agreement or other similar arrangement and (ii) any amount of money the unitholder borrows to acquire or hold common units if the lender of those borrowed funds owns an interest in us
(other than as a creditor) or is a related person to a person (other than the unitholder) having such an interest, or can look only to the common units for repayment. A unitholder’s at-risk amount will
generally increase or decrease as the tax basis of the unitholder’s common units increases or decreases, other than tax basis increases or decreases attributable to (i) increases or decreases in the unitholder’s share of our
nonrecourse liabilities, (ii) the unitholder’s share of our excess business interest and (iii) the unitholder’s share of our expenditures that are not deductible in computing taxable income and are not required to be capitalized.

In addition to the basis and at-risk limitations on the deductibility of losses, the passive loss
limitations generally provide that individuals, estates, trusts, and some closely-held corporations and personal service corporations can deduct losses from passive activities, which are generally trade or
business activities in which the taxpayer does not materially participate, only to the extent of the taxpayer’s income from those passive activities. The passive loss limitations are applied separately with respect to each publicly traded
partnership. Consequently, any passive losses we generate will be available to offset only our passive income generated in the future and will not be available to offset income from other