What is the difference between an investment in units of a publicly traded MLP and stock in a corporation?
A limited partner in an MLP such as BreitBurn Energy Partners L.P. owns units of the partnership instead of shares of stock in a corporation. Partners in an MLP receive cash distributions rather than dividends. Unlike a corporation, partnerships are generally not subject to federal and state income tax. Instead, all income, gains, losses and deductions of the partnership pass through to its unitholders who are, in turn, required to report their share of those items on their individual tax returns, as though the unitholder had incurred these items directly.
