25:
572:
Because of the stringent provisions on MLPs and the nature of the quarterly required distributions, most MLPs operate oil, natural gas, or refined product pipeline businesses, which tend to generate more predictable income streams. However, many other assets can be operated in an MLP including
664:, companies operating cemeteries qualify to become MLPs. Additionally, the first generation of MLPs was grandfathered into the structure in the 1980s when the incomes limits were strictly defined. While most have converted to other structures such as
612:. A number of MLPs are dedicated to marine transportation, oil and gas exploration, oilfield services, and downstream refining/marketing/distribution services. MLPs also operate in the propane, coal and biomass industries.
42:
199:
that conducts its operations through subsidiaries and are not always publicly traded. Most PTPs are organized as MLPs, but a PTP may be organized as a
89:
61:
253:
Section 7704 of the
Revenue Act of 1987 limited which businesses could be MLPs, delineating that an MLP must earn at least 90% of its
573:
processing plants, natural resource storage facilities, rail terminals, marine transportation vessels, and refineries, among others.
850:
108:
68:
685:
471:
231:
companies soon followed, and by the mid-1980s, MLPs became so popular that they were adopted in a variety of industries, such as
810:
815:
46:
75:
537:
633:
601:
576:
Examples of MLPs involved in the gathering, processing, compression, transportation and storage of oil and gas include
57:
645:
593:
840:
35:
200:
625:
585:
416:
396:
380:
368:
348:
845:
710:
581:
820:
529:
376:
352:
277:
82:
629:
620:
A number of companies in the finance, investment and real estate industries operate as MLPs, such as
388:
589:
459:
455:
400:
360:
293:
196:
165:
519:
451:
435:
224:
212:
195:
The "MLP" and "PTP" terms are commonly used interchangeably, but MLPs are technically a type of
784:
168:, MLPs must generate at least 90% or more of their income from qualifying sources such as from
641:
637:
621:
577:
475:
431:
412:
325:
305:
262:
181:
173:
552:
487:
408:
392:
364:
317:
301:
247:
142:
609:
420:
404:
321:
258:
244:
177:
834:
734:
669:
657:
597:
556:
548:
541:
533:
372:
333:
220:
216:
189:
169:
122:
605:
491:
463:
254:
228:
146:
24:
689:
673:
507:
503:
232:
158:
430:, an MLP often has a conflicts committee composed of two or more independent
515:
467:
427:
384:
313:
297:
154:
661:
544:
522:
499:
479:
439:
356:
344:
240:
219:' first MLP, Apache Petroleum Company (APC). Apache’s success drew other
337:
266:
185:
280:
which further clarify and define which activities generate qualifying
495:
329:
281:
16:
Limited partnership that is publicly traded on a securities exchange
757:
825:
665:
309:
236:
434:. This committee reviews specific matters as authorized by the
511:
483:
273:
150:
18:
257:
from qualifying sources, which were strictly defined as the
711:"Facts & Answers about Publicly Traded Partnerships"
758:"Linn Energy Vs LinnCo: Cramer Sorts Out the Confusion"
709:
688:(KGaA), a similarly-designed business entity under
419:through pursuing income-producing acquisitions and
371:paid by MLPs is equivalent to the dividend paid by
49:. Unsourced material may be challenged and removed.
328:; however, many MLPs have incentive distribution
486:on their individual portion at their individual
462:may also record a pro-rated share of the MLP's
785:"Lists of Current MLPs & MLP Funds – MLPA"
8:
426:In addition to the traditional governance
203:that elects to be taxed as a partnership.
474:. This means that all items on an MLP's
261:, processing, storage, and production of
109:Learn how and when to remove this message
811:Master Limited Partnerships and Taxation
701:
514:owed in the current year. Instead of a
351:, the amount of which is stated in the
826:Master Limited Partnership Association
395:. Typically, the higher the quarterly
383:is typically defined as all available
7:
816:Master Limited Partnerships Overview
779:
777:
775:
733:Resonance Financial (May 28, 2014).
538:Unrelated Business Income Tax (UBIT)
47:adding citations to reliable sources
153:benefits of a partnership with the
502:distribution serves to reduce the
332:, which are designed to align the
304:which make the decisions, and the
14:
686:Kommanditgesellschaft auf Aktien
450:Because MLPs are not subject to
227:companies to the MLP structure.
164:To obtain the tax benefits of a
23:
756:Lee Brodie (October 16, 2012).
34:needs additional citations for
438:that may involve conflicts of
415:with an incentive to maximize
1:
735:"Master Limited Partnerships"
634:Brookfield Property Partners
602:Plains All American Pipeline
590:Enterprise Products Partners
411:. This provides the general
58:"Master limited partnership"
646:Och-Ziff Capital Management
594:Magellan Midstream Partners
391:which is determined by the
347:through quarterly required
296:, MLPs have two classes of
135:publicly traded partnership
867:
528:As a consequence of their
518:, MLP investors receive a
127:master limited partnership
272:In the decades since the
201:limited liability company
851:Types of business entity
821:Standard & Poors.com
626:Apollo Global Management
586:Energy Transfer Partners
363:(the investors) and the
610:TransMontaigne Partners
312:and participate in the
789:www.mlpassociation.org
536:accounts may generate
278:Private Letter Rulings
656:Under the rents from
551:holding companies of
498:, the majority of an
456:pass-through entities
377:partnership agreement
353:partnership agreement
630:The Blackstone Group
510:, which reduces the
478:flow through to the
367:(the managers). The
294:limited partnerships
192:rents also qualify.
43:improve this article
547:, some MLPs set up
530:pass-through status
197:limited partnership
157:of publicly traded
532:, holding MLPs in
494:typically exceeds
452:corporate taxation
436:board of directors
302:general partner(s)
284:and which do not.
213:Apache Corporation
149:. It combines the
145:entity taxed as a
841:Corporate finance
672:, a few, such as
660:provision of the
642:Icahn Enterprises
638:The Carlyle Group
622:AllianceBernstein
403:, the higher the
308:which contribute
263:natural resources
182:natural resources
119:
118:
111:
93:
858:
799:
798:
796:
795:
781:
770:
769:
767:
765:
753:
747:
746:
744:
742:
730:
724:
723:
721:
720:
715:
706:
578:Buckeye Partners
555:which can issue
488:income tax rates
476:income statement
460:Limited partners
401:limited partners
361:limited partners
326:limited partners
306:limited partners
114:
107:
103:
100:
94:
92:
51:
27:
19:
866:
865:
861:
860:
859:
857:
856:
855:
831:
830:
807:
802:
793:
791:
783:
782:
773:
763:
761:
755:
754:
750:
740:
738:
732:
731:
727:
718:
716:
713:
708:
707:
703:
699:
682:
676:, still exist.
565:
553:limited partner
540:. To encourage
448:
409:general partner
393:general partner
365:general partner
343:MLPs pay their
318:general partner
290:
250:became an MLP.
248:basketball team
209:
188:. In addition,
176:, storage, and
143:publicly traded
115:
104:
98:
95:
52:
50:
40:
28:
17:
12:
11:
5:
864:
862:
854:
853:
848:
846:Legal entities
843:
833:
832:
829:
828:
823:
818:
813:
806:
805:External links
803:
801:
800:
771:
748:
725:
700:
698:
695:
694:
693:
681:
678:
670:C corporations
616:Financial MLPs
564:
561:
454:, they act as
447:
444:
421:organic growth
405:management fee
373:C corporations
359:, between the
322:fiduciary duty
289:
286:
259:transportation
245:Boston Celtics
208:
205:
180:of depletable
178:transportation
117:
116:
31:
29:
22:
15:
13:
10:
9:
6:
4:
3:
2:
863:
852:
849:
847:
844:
842:
839:
838:
836:
827:
824:
822:
819:
817:
814:
812:
809:
808:
804:
790:
786:
780:
778:
776:
772:
759:
752:
749:
736:
729:
726:
712:
705:
702:
696:
691:
687:
684:
683:
679:
677:
675:
671:
667:
663:
659:
658:real property
654:
653:
649:
647:
643:
639:
635:
631:
627:
623:
618:
617:
613:
611:
607:
603:
599:
598:NuStar Energy
595:
591:
587:
583:
582:DCP Midstream
579:
574:
570:
569:
563:Types of MLPs
562:
560:
558:
557:common equity
554:
550:
549:C corporation
546:
543:
539:
535:
531:
526:
524:
521:
517:
513:
509:
505:
501:
497:
493:
489:
485:
481:
477:
473:
469:
466:on their own
465:
461:
457:
453:
445:
443:
441:
437:
433:
429:
424:
422:
418:
417:distributions
414:
410:
406:
402:
398:
397:distributions
394:
390:
386:
382:
378:
374:
370:
366:
362:
358:
354:
350:
349:distributions
346:
341:
339:
335:
331:
327:
323:
319:
315:
311:
307:
303:
299:
295:
287:
285:
283:
279:
275:
270:
268:
264:
260:
256:
251:
249:
246:
242:
238:
234:
230:
226:
222:
218:
217:United States
214:
206:
204:
202:
198:
193:
191:
190:real property
187:
183:
179:
175:
171:
167:
162:
160:
156:
152:
148:
144:
140:
136:
132:
128:
124:
123:United States
113:
110:
102:
91:
88:
84:
81:
77:
74:
70:
67:
63:
60: –
59:
55:
54:Find sources:
48:
44:
38:
37:
32:This article
30:
26:
21:
20:
792:. Retrieved
788:
762:. Retrieved
751:
739:. Retrieved
737:. RezFin.com
728:
717:. Retrieved
704:
655:
651:
650:
619:
615:
614:
606:TC PipeLines
575:
571:
567:
566:
527:
520:Schedule K-1
492:depreciation
464:depreciation
449:
425:
407:paid to the
381:distribution
369:distribution
342:
291:
271:
255:gross income
252:
210:
194:
166:pass through
163:
138:
134:
130:
126:
120:
105:
96:
86:
79:
72:
65:
53:
41:Please help
36:verification
33:
568:Energy MLPs
276:has issued
243:. Even the
233:restaurants
229:Real estate
215:formed the
147:partnership
835:Categories
794:2018-09-17
760:. Cnbc.com
719:2018-09-17
697:References
690:German law
674:Cedar Fair
652:Other MLPs
542:tax-exempt
534:tax-exempt
508:investment
504:cost basis
500:investor’s
470:to reduce
428:committees
423:projects.
174:processing
170:production
159:securities
99:April 2020
69:newspapers
545:investors
516:Form 1099
480:investors
472:liability
468:tax forms
432:directors
387:, less a
385:cash flow
375:. In the
345:investors
334:interests
314:economics
298:ownership
292:Like all
288:Structure
211:In 1981,
155:liquidity
741:July 19,
680:See also
662:tax code
523:tax form
482:who pay
446:Taxation
440:interest
399:paid to
357:contract
320:owes no
267:minerals
241:cable TV
186:minerals
764:June 3,
506:of the
413:partner
389:reserve
338:parties
336:of all
324:to the
207:History
141:) is a
121:In the
83:scholar
644:, and
608:, and
496:income
379:, the
330:rights
316:. The
300:: the
282:income
237:hotels
85:
78:
71:
64:
56:
714:(PDF)
666:REITs
512:taxes
490:. As
484:taxes
355:, or
310:funds
133:) or
90:JSTOR
76:books
766:2013
743:2015
265:and
239:and
223:and
184:and
125:, a
62:news
668:or
274:IRS
225:gas
221:oil
151:tax
139:PTP
131:MLP
45:by
837::
787:.
774:^
648:.
640:,
636:,
632:,
628:,
624:,
604:,
600:,
596:,
592:,
588:,
584:,
580:,
559:.
525:.
458:.
442:.
340:.
269:.
235:,
172:,
161:.
797:.
768:.
745:.
722:.
692:.
137:(
129:(
112:)
106:(
101:)
97:(
87:·
80:·
73:·
66:·
39:.
Text is available under the Creative Commons Attribution-ShareAlike License. Additional terms may apply.
