No. of Recommendations: 0
MLP's pay good yields because unlike corporations, they pay no income taxes. The whole cash stream goes to you as a partner and you are supposed to pay income taxes on it. Yes, that includes potential state taxes in every state. That is usually an issue with them mentioned in the fine print. I have never owned a pipeline with operations in many states, but I have never received a tax bill from a state.

Another potential liability. Don't hold the units too long.

These are high risk investments, good for income for a while, but not a good place for the rent money. They can be OK as part of a diversified portfolio.
Print the post  


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.