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Subject:  Re: MLPs - help? Date:  3/25/2013  5:45 PM
Author:  TMFHelical Number:  14040 of 18422

Specifically... the potential for owing (and far more importantly, having to file a return for) state income tax in every state where an MLP has assets.

I've not tended to worry about this, but I've also not held so much in MLPs that I thought it a concern. While not a tax expert by any stretch, I have assumed that if below 'typical deduction levels' for a state return, I wouldn't have to worry about it. May not be right, but ..... If you are going to own enough to generate 10's of thousands of dollars in such income, then it is certainly worth following up. If we are talking just a grand or two ... I seriously doubt you have much to concern yourself with.

While I don't know a universal resource, the investor relations units of these companies are used to these kinds of questions. They can't give you specific advice, but can certainly note what % of income came from what states in years past and how predictive that will be going forward. Probably also have different states treat the distribution. Many do have state concentrations i.e. are not that geographically diverse.

Ralph
Helical Investor
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