Earn Huge Dividends -- and Shortchange Uncle Sam

Master Limited Partnerships (MLPs) have a powerful tax advantage that most investors don't understand. If used properly, investors can generate large amounts of income while deferring taxes, as long as the investor doesn't sell the MLP. Read along, and I'll explain how you can use this advantage to reap income. The secret of MLPs An MLP is a legal structure that generally owns pipelines, resources, refineries, terminals, or other large assets related to natural resources, commodities, or real estate. Profit flows straight through the business untaxed, and gets paid to shareholders -- here known as unitholders -- as distributions from the business's cash flow. Unitholders are then responsible for paying their share of the partnership's taxes (even if the MLP is held in an IRA, which is not recommended). However, unitholders are taxed only on their share of the MLP's income, which is usually a much lower number than the amount of cash the business is bringing in.... Read more