MLPs and UBTI: What Advisors Should Know

Summary Directly owning MLPs can generate Unrelated Business Taxable Income (UBTI) for tax-exempt organizations and retirement accounts. MLP ETFs will not generate UBTI, but they still may be suboptimal for tax-advantaged accounts. MLP ETNs and RIC-compliant midstream ETFs tend to be well suited for tax-advantaged accounts. Investors often have questions about owning Master Limited Partnerships [...] The post MLPs and UBTI: What Advisors Should Know appeared first on ETF Trends .