Skip to main content
Message Font: Serif | Sans-Serif
No. of Recommendations: 1
The MLP distributions received in a taxable account are tax free.

My experience is the distributions are reported on Schedule E, where you can deduct depreciation, oil depletion, and a wide variety of other things. So often no tax is due this year. However, you also reduce your cost basis. So ultimately your distribution is taxed at capital gains rates (assuming you manage to sell at a profit).
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.