club_cafe: Master Limited Liability Partnerships (MLLP)
| HelpRegister |
club_cafe: Master Limited Liability Partnerships (MLLP) >>Has anyone here ever purchased stock in an MLLP?? Our club is thinking of buying one and I was wondering what others have thought. I do not know alot about MLLP's and am unfamiliar with the way they work. In general, I would advise against it, not because of the (lack of) quality of the investment, but because of the incredible headaches the record keeping will become. An MLLP operates similarly to your investment club. It is a partnership. It doesn't pay dividends or interest "per se", but does distribute income and expense which can include dividends, interest, operating earnings, real estate income, foreign income and taxes and anything else you can imagine. It will report those amounts to the club by way of a Schedule K-1 which you probably won't receive until mid/late March. If that weren't bad enough, none of the club accounting software that I am familiar with can handle the intricacies of the accounting. Ira Smilovitz |
|
||||||