Are the tax implications for MLPs the same if I buy them in MLPs? Is there the extra bookkeeping, etc., needed in this structure?
- posted
11 years ago
ETFs of MLPs
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- posted
11 years ago
- See this site for a very good explanation of the tax implications of investing directly in MLPs. formatting link
- And yes, the tax implications for investing in an ETF that tracks an MLP index are different. The ETF takes on all the tax issues identified in the above explanation.
- ETFs are not regulated investment companies and are therefore taxed as a corporation. As such, they can't always avoid double taxation. This would trigger a lower ROI in an ETF vs the actual MLPs.