MLP's as good as it gets?
Earn high tax-free 7% investment income with a Master Limited Partnership (MLP) U.S. energy & natural resource company portfolio
The IRS tax code allows certain types of structured businesses that are publically traded partnerships (MLPs) to be exempt from federal corporate income taxation. These are "flow through entities", whereby partnership income distributions flow through to the limited partners. MLP firms operate passive businesses in U.S. energy exploration, production, conversion, storage and pipelines. Plus, there are other qualifying MLPs that are engaged in natural resource businesses. The income distributions of MLPs to partners are classified as "return of capital" and thus not subject to state or federal personal taxation. MLPs are long term income investments that have a consistent record of increasing their quarterly income distributions. An MLP portfolio can be of great strategy for building wealth via tax-free annual compounded reinvestment of income. For retirees in high state and federal tax brackets, the MLP tax-free income is quite desirable. How would you like to have 7% tax-free income for the rest of your life?