MLP funds come with extra tax wrinkles that are important for investors to understand.
For example, AMLP, circumvents the K-1 filing procedure required for traditional MLP equity holdings, says investment researcher Morningstar.
“AMLP is structured as a C-corp for tax purposes and is taxed at the entity level. This causes a layer of double taxation for investors,” it said in an analyst report on the ETF.
ALPS Alerian MLP ETF
