bear_mkt

The Nine Best Natural Gas, Oil Pipelines for Income and Capital Gains

Don't forget state taxes if you get a K-1. You may owe state income taxes in states where the partnership does business and you may be required to file a state 1040-NR on your non-resident income.

I constantly read on the message boards how high and wonderful partnership yields are. I rarely see any mention of the added tax burden. For the Average Honest Joe the added cost of tax preparation (federal and multi-state paperwork) can eat into that high yield.

Of course you could gamble and not pay tax on the teeny-weenie dividend allocated to each state. However, in a computerized era, it's easy for the states to spear fish in the barrel and collect some decent penalties from non-filers.

Investment sentiment: long on tax accountants.