|
EC SD | PAA is a Master Limited Partnership, so although looks like a very good investment, be prepared to get a complex K1 form from them annually. As a pass-through business, they avoid paying income taxes, but you will pay their tax bill via this K1 on your tax return. It can be quite challenging to do this, since they may do business in many states, some of which have income taxes too. It doesn't matter if you buy inside of an IRA or not, you have to report the income taxes due for your share of the partnership.
Well, to sum it up, I no longer buy MLP tickers for that specific reason. If you like pipelines, like I do, then buy the ones that have C corp structures, like OKE, etc. | |
|
Plains all American pipeline
