Master limited partnerships have gotten extremely popular
among investors. But what exactly
MLPs, and why are they getting so much attention from the
In the following video, Dan Caplinger, The Motley Fool's
director of investment planning, runs through the basics of MLPs.
Dan notes that the big draw comes from tax benefits of the MLP
structure, which avoids entity-level taxation and involves
passing through income distributions to investors. Big yields are
available from MLPs and other similar entities, with
Kinder Morgan Energy Partners
yielding more than 7%,
Enterprise Products Partners
paying more than 4%, and LLC
weighing in at 10%. Dan points out that some of those
distributions have raised concerns about sustainability, and
there are also worries that lawmakers could rein in or eliminate
the MLP structure. For now, though, the tax advantages of
energy-related income from MLPs loom large in investors' thinking
about the entities.
Take advantage of this little-known MLP
Recent tax increases have affected nearly every American
taxpayer. But with the right planning, you can take steps to
take control of your taxes and potentially even lower your tax
bill. In our brand-new special report "
The IRS Is Daring You to Make This Investment
The IRS Is Daring You to Make This Investment Now!," you'll
learn about the simple strategy to take advantage of a
little-known IRS rule involving master limited partnerships.
Don't miss out on advice that could help you cut
taxes for decades to come.
Click here to learn more.
has no position in any stocks mentioned. The Motley Fool
recommends Enterprise Products Partners. Try any of our Foolish
free for 30 days
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