Skip to main content
Message Font: Serif | Sans-Serif
 
No. of Recommendations: 1
I am not sure that all mpl distributions in a taxable account are tax free...Much of the distribution as I understand reduces the tax basis...If you were to sell you would have to pay gains on the reduced basis..

It appears from your statement that you are not familiar with a K-1 or if you had than you didn't understand it.
Distributions are listed on Line 19A of the K-1 There are 9 (nine) separate lines on the K-1 that are reportable on your tax return . NONE OF THOSE LINES ARE THE DISTRIBUTION LINE 19A.
You don't report your distributions to the IRS. An MLP is a pass-through investment You are a partner and not a shareholder Distributions are paid from Distributable cash flow and not from earnings. Distributable Cash Flow comes from depreciation of assets and other accounting items
An MLP is a Publicly traded "Master Limited Partnership" It is not a stock It is a Tax sheltered partnership You should read an MLP Primer BEFORE YOU BUY AN MLP.


Most of your post--I'm sorry to say+++++ is incorrect and misleading+++++

Here is a link to learn about MLPs (there are many others on google

http://www.merrilledge.com/publish/content/application/pdf/g...

MLPs have been the backbone of my investing for over 14 years. In has been very lucrative for me and many others. You should however get familiar with what they are and ask questions before you buy, That way you and others have a chance to learn

respectfully submitted
b&w
Print the post  

Announcements

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.