Investing 102

[WSSix]

Originally Posted by GregWeld

#1 -- Thanks!

#2 -- MLP's and Royalty Trusts are "DISTRIBUTIONS" rather than "dividends" - and as such have tax consequences. That doesn't mean you have a tax problem - it just means that they are shown on tax forms and you'll get tax forms sent to you for the amounts you receive.

#3 -- This doesn't mean much if they're held in IRA/ROTH accounts etc.

#4 -- Unless you have pretty large holdings of this stuff - you're unlikely to get enough distribution that it's going to have a taxable influence on your overall earnings. I wish that weren't so! I wished you all were getting 50K a year from these bad boys!

Thanks Greg. As you've said, paying taxes means you've made money. I'm quite alright being taxed to an extent on an investment. I was mainly concerned with do I need to keep an eye out for these tax forms once a year.