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I have read that KMR, which pays distributions as extra shares of stock instead of cash, eliminates the tax complications of ordinary MLPs like KMP in tax-deferred accounts. The implication is that the IRS considers the extra shares like stock splits and not UBTI. Is that true?

That is true. I can only speak to KMR which I use to have within my IRA. No K-1's to deal with or any UBTI conflicts.

You may also want to look at LNCO (similar situation) but do your due diligence.

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