I don't know enough about them to extremely useful to you, but I prepare a few returns for clients who have MLP interest (exclusively oil and natural gax MLPs). Just my opinion, they are a pain in the ass tax reporting wise, but that probably is because the software I use is geared more for agricultural tax payers.
The depreciation is a passive loss. That's about it for answers I have.
Thanks! That is helpful. I'm not looking at buying oil well or anything, and the major competitor to the company I am interested in does almost exactly the same thing but is organized as a corporation.
You would think I'd be able to look at the historical distributions to find out what I need to know but it seems very hard to find the info. This is a NYSE-traded company too.
There seems to be a lot online explaining the pros and cons of MLPs, most of which I already understand. But there doesn't seem to be much info about the actual mechanics of owning them. The closest I've found is that they send you a K-1 every year instead of a 1099 and that form has simple number boxes that get transferred to your tax form...seems simple enough, lol!
I'm betting that Mr. Frise has some experience with these...