Message Font: Serif | Sans-Serif
No. of Recommendations: 2
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.

Helical Investor
Print the post  


When Life Gives You Lemons
We all have had hardships and made poor decisions. The important thing is how we respond and grow. Read the story of a Fool who started from nothing, and looks to gain everything.
Contact Us
Contact Customer Service and other Fool departments here.
Work for Fools?
Winner of the Washingtonian great places to work, and Glassdoor #1 Company to Work For 2015! Have access to all of TMF's online and email products for FREE, and be paid for your contributions to TMF! Click the link and start your Fool career.