Publicly Traded Partnership: PTP & MLP Tax Guide
Warren Team
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Key terms
- PartnershipA business structure in which two or more individuals share ownership, responsibilities, profits, and liabilities of a business. Partnerships come in several forms, including general partnerships where all partners share liability equally, and limited partnerships where some partners have limited liability and a more passive role. Partnership income passes through to the partners' individual tax returns, avoiding corporate-level taxation.
- ETF (Exchange-Traded Fund)An investment fund that trades on stock exchanges, holding assets like stocks, commodities, or bonds. ETFs offer diversification and typically have lower fees than mutual funds.
- Tax BracketThe range of income subject to a certain income tax rate in the progressive US tax system. Higher income levels are taxed at higher rates (marginal tax rates).
- Marginal Tax RateThe tax rate applied to your last dollar of income. In the US progressive tax system, different portions of income are taxed at different rates.
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