Adding insult to injury – tax hit for MLP investors!

Something for investors in MLPs to watch out for – there might be a tax hit, even when there was no income. Besides losses and lack of distributions with oil and gas MLPs, there is also a potential of further loss if the MLP declares bankruptcy, which many are doing. Forgiveness of outstanding debt to the company qualifies as “income” that gets passed on to shareholders even if no distributions were received, resulting in a tax burden on top of losses from the investment.

Spread the word. Share this post!

Leave Comment

Your email address will not be published. Required fields are marked *