Re: Master Limited Partnerships

[Don <dwzimm@telus.net>]

On 2009-08-06 09:34:55 -0700, Tad Borek <borekfm@pacbell.net> said:

> This tax profile favors (for example) someone in a higher tax bracket 
> who wants income now, and either would hold "forever" or wouldn't mind 
> a big ordinary-income item on their tax return many years from now when 
> they sell units to raise cash. That implies that they expect a lower 
> tax bracket in the future, than they have now.
>
> Or, keep the position small enough that UBTI isn't an issue, hold in an 
> IRA, and forget about the K-1 and basis problems.

Yes! And there also depletion of one's equity in the venture as 
"capital is returned." That tends to lessen the value of the investment 
in the future if one wants to sell.