master limited partnership

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Master limited partnership (MLP)

Copyright © 2012, Campbell R. Harvey. All Rights Reserved.

Master Limited Partnership

A limited partnership with ownership units that may be traded on an exchange. A limited partnership consists of a general partner, who manages the venture, and limited partners, who simply provide capital. A master limited partnership allows limited partners to buy and sell units of the venture as if they were shares in a publicly-traded company. Limited partners often receive cash distributions, which are similar to dividends, on a regular basis. This business form combines the tax advantages of a partnership, which does not pay tax on its profit, with the liquidity of a publicly-traded company. It is also called a publicly traded partnership.
Farlex Financial Dictionary. © 2012 Farlex, Inc. All Rights Reserved

master limited partnership (MLP)

A limited partnership that provides an investor with a direct interest in a group of assets (generally, oil and gas properties). Master limited partnership units trade publicly like stock and thus provide the investor significantly more liquidity than ordinary limited partnerships. See also roll-up.
Wall Street Words: An A to Z Guide to Investment Terms for Today's Investor by David L. Scott. Copyright © 2003 by Houghton Mifflin Company. Published by Houghton Mifflin Company. All rights reserved. All rights reserved.
References in periodicals archive ?
A publicly traded partnership taxed as a corporation under the above rules is treated, in general, as a taxable entity and tax benefits are taken at the partnership level.
With the exception of certain publicly traded partnerships, a partnership, as such, is not taxed.
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On 5 May 2015, Crestwood Equity and Crestwood Midstream announced they had entered into a definitive agreement to merge the two publicly traded partnerships and simplify Crestwood's corporate structure into a single publicly traded partnership.
However, when a publicly traded partnership is taxed as a corporation, investors are unable to take partnership deductions, credits, and income on their own tax returns.
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(Electing large partnerships have somewhat different flow-through rules than regular partnerships (see Q 7784).) However, if a publicly traded partnership is taxed as a corporation, the income, deductions, and credits are reported by the partnership and do not flow through to the partners.
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The IRS plans to issue guidance regarding technical terminations of a publicly traded partnership (PTP) resulting in multiple short tax years within one calendar year, which can cause considerable problems for taxpayers.
Magellan Midstream Partners is a publicly traded partnership formed to own, operate and acquire a diversified portfolio of energy assets.
Observation: If the IRA had invested in a publicly traded partnership instead of a nonpublicly traded partnership the results would have been the same.