We try and try to let you know ahead of time not to invest in MLP's in your investment clubs. It's not that we want to deprive you of anything, it's just that they come with complicated tax reporting issues which are beyond the scope of the services provided by us or any other reasonably priced investment club accounting program. If you are not an expert in partnership accounting or partnership taxation, you most likely will not know how to handle them yourselves.

If you want more convincing, this is a really good article discussing all the issues that come along with MLP's. It's four pages long. Make sure you read all of them before you think there is something simple you can do to be able to own MLP's in your club.

Tax Guide to Master Limited Partnerships

If something has Partnership or Partners or the initials LP in its name, it is a Partnership. Though you buy shares of it like a stock from your broker, it is not the same as a stock.

You can find a list of Investments that cause problems here:

Before You Invest

And, as always, you are welcome to contact us in support if you have any concern that something your club is considering purchasing will cause a problem.

Laurie Frederiksen
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