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Hi, I'm new to MLP investing and have a question. I understand the preferred way to invest in MLPs is in a taxable account.

I disagree. The hidden trap of MLPs is that ownership of an MLP interest opens the investor to the possibility of having to file income tax returns in every state where the MLP operates. Some states have minimum income thresholds; others require a return for $1 of income.

Conversely, most MLPs don't generate much UBI and many generate UBI losses. Should your IRA receive more than $1000 in UBI, the custodian (broker) will usually file the return for the IRA.

All bets are off, however, if Congress reconciles the competing tax cut bills.

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