master limited partnership

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Master limited partnership (MLP)

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.

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.
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.
Combined QBI is defined in IRC section 199A(b) as an amount equal to the sum of the QBI amounts for each QBI plus 20% of the aggregate amount of qualified real estate investment trust (REIT) dividends and qualified publicly traded partnership income of the taxpayer for the taxable year.
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.
QR Energy LP (NYSE: QRE), a publicly traded partnership engaged in the acquisition, production and development of onshore crude oil and natural gas properties in the United States, has signed a contract to acquire oil properties located in the Ark-La-Tex area and Michigan, from an undisclosed private seller.
(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.
The publicly traded partnership managing a diversified portfolio of energy assets said it intends to sell 5m common units in a registered public offering that will be co-managed by RBC Capital Markets and UBS Investment Bank.
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.