FYI: Investors’ search for yield amid an extended environment of ultra-low interest rates has helped fuel the growth of MLP investments, according to a new publication from Marquette Associates. MLPs aren’t subject to corporate income tax, but instead their profits flow through to their “unit-holders” (the MLP equivalent of shareholders), who are taxed at their individual rates. So long as an investor’s marginal income tax rate is lower than the corporate rate, MLPs are tax-advantaged investments.
Directly investing in MLPs, however, can create some tax complications, and as a result, has held institutional investors back from investing more broadly in this asset category. However, the introduction of new investment vehicles has created opportunities for both individuals and institutions to structure MLP investments in ways that are most suitable to their needs
Regards,
Ted
http://dailyalts.com/mlp-investment-guide-taxable-non-taxable-investors/
