I would like to invest in master limited partnerships (MLPs) for their high yield, but would like to avoid their tax complexities. If I buy exposure to MLPs through an ETF or mutual fund, will that abstract away the need to process individual K-1s and constantly adjust the basis of my holdings, do RoC calculations, etc.? While these calculations may not be that bad for a single MLP, when you're constantly buying and selling multiple MLPs, the accounting work would seem to be overwhelming.


The answer is yes, MLP ETFs such as AMZA and MLPA eliminate the need to process K-1's yourself. They handle all the complex tax paperwork for you.

Source: personal experience

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