Skip to main content
No. of Recommendations: 1
Hey Ken,

From what I understand, BIP is subject to the tax implications mentioned in that Morningstar excerpt that you posted. You can find more information on Brookfield's website at

From my limited experience with MLPs (through a former investment in EPD), there are a couple of things to keep in mind.

First, holding an MLP in an IRA is only a bad idea if you have UBTI of over $1,500 a year. That typically means that any account with MLP investments of $20,000 or less are safe from this.

Second, the "MLPs' benefits when held within a taxable account" come with strings attached. Namely, you may have to file state tax returns in many more states than you would otherwise. One year of having to file 7 state returns due to a $5,000 investment in EPD was enough to get me to sell. I use TurboTax and can assure you that was a gigantic pain. If I had an investment of $50,000, I estimated that I would've needed to file state returns in 22 states.

Hope that helps. Does anyone else have firsthand insight with BIP?

Print the post  


What was Your Dumbest Investment?
Share it with us -- and learn from others' stories of flubs.
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.