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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 http://www.brookfieldinfrastructure.com/content/investor_rel...

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?

Brian
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