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What is Master Limited Partnership mean?
In the United States, a master limited partnership (MLP) or publicly traded partnership (PTP) is a publicly traded entity taxed as a partnership. It combines the tax benefits of a partnership with the liquidity of publicly traded securities.
To obtain the tax benefits of a pass through, MLPs must generate at least 90% or more of their income from qualifying sources such as from production, processing, storage, and transportation of depletable natural resources and minerals. In addition, real property rents also qualify.
While the "MLP" and "PTP" terms are commonly used interchangeably, MLPs are technically a type of limited partnership that conducts its operations through subsidiaries, and are not always publicly traded. While most PTPs are organized as MLPs, a PTP may be organized as a limited liability company that elects to be taxed as a partnership.
referencePosted on 16 Dec 2024, this text provides information on Miscellaneous in Stock Exchange related to Stock Exchange. Please note that while accuracy is prioritized, the data presented might not be entirely correct or up-to-date. This information is offered for general knowledge and informational purposes only, and should not be considered as a substitute for professional advice.
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