Investor FAQ

A partner in a publicly traded master limited partnership owns units in the partnership rather than shares of stock in a corporation. Partners receive cash distributions rather than dividends. Unlike a corporation, partnerships are not subject to federal and state income taxes. Instead, all income, gains, losses and deductions of a partnership are passed through to the partners who are required to report their allocable share on their tax returns. Cash distributions are not taxable as long as the partner's tax basis in the partnership interest exceeds zero. While a corporate shareholder receives a Form 1099 each year reflecting tax information, a unit-holder in a partnership receives a Tax Reporting Package including substitute Schedule K-1 and other forms to file with their tax return. The substitute K-1 reports to the unit-holders their allocable share of the partnership's income, gains, losses and deductions.

For more information about master limited partnerships, visit The National Association of Publicly Traded Partnerships at http://www.naptp.org/.