With a LIMITED partnership, all you can lose is your investment. You have no liability as far as lawsuits or other liabilities of the partnership. If you are a GENERAL partner, you potentially could be sued for liabilities of the partnership, but that isn't what you asked abut. Annually, instead of a 1099, you get a K-1. They are somewhat more complicated from a tax point of view, but you can learn to do it. There is a tax advantage, so if the Senate ok's the tax cut I would expect the prices of MLPs to drop. The partnership is for a finite period of time, as stated in the prospectus when it is organized. Many of them are old limited partnerships, rolled at some point into a MLP. The MLP is not itself a tax-paying entity. It passes its profits and losses to you. Commonly the dividends are shielded by depreciation from taxes for the first several years. In themselves they are neither good nor bad, although a lot of money has been lost in limited partherships, sold at high commission rates by brokers. The old saying was that at the beginning of a limited partnership, the general partner has experience and the limited partners have money. At the end of the partnership, the limited partners have acquired some experience and the general partner has the money. Some have turned out well. Read before buying, but it can be a good thing. Since it is already tax-sheltered, don't buy it with IRA money, although doing so would let you escape dealing with the K-1s. Best wishes, Chris
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