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Author: TMFMurph Big gold star, 5000 posts Old School Fool Home Fool Add to my Favorite Fools Ignore this person (you won't see their posts anymore) Number: of 35392  
Subject: Re: Creating an MLP Newsletter Date: 11/18/2009 9:27 AM
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Hi Junkman, All!

Here is a pretty good primer on MLP's:
http://www.dimeoschneider.com/research/documents/EngergyInfr...

And here is a take on MLP's in tax-advantaged accounts and the UBTI issue ( you'd have to have HUGE positions for this to be an issue, since most distributions don't have much UBTI ):

"...Our understanding is this: if you have UBTI from MLPs (PTPs) the custodian of your account is supposed to file a form 990T and pay tax from funds in your account on the net income from your aggregated MLPs (and any other partnerships you may have in your non-taxable account). In practical terms, we would not expect this to happen. Last year, for example, the aggregate K-1s for our Income-Equity account showed a substantial net loss for tax purposes (even though we received substantial cash from our investments). There was no “ordinary income” to be considered for UBTI.

This “no ordinary income” isn’t guaranteed every year, but any UBTI qualifying income is likely to be de minimus. Although we are not tax professionals, we would be comfortable in the thought that an
account would have to be of institutional size (say, $5 million and up) before it would possibly generate any UBTI above the exclusion...."

http://www.mhinvest.com/supportArticles/MLP-IRA.pdf


And a site for tax help on MLP's:
https://www.k1support.com/(S(s2inwmn3pv44tniedd5ug2vb))/k1Su...

And an article about how the various partner types work/interrelate:
http://seekingalpha.com/article/167554-mlps-gp-lp-relationsh...

Cheers!
Murph
Income Investor Home Team Fool
( and owner of many an MLP for many years, with no massive tax hassles )
( NOT a tax expert, CFA or any sort of investing professional....just an ordinary investor )
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