The Hidden Tax Trap of Holding U.S. LPs and MLPs in an RRSP or LIRA

Views: 782 2025-10-01 Many Canadians look south of the border for income investments, often drawn by the high payouts from U.S. limited partnerships (LPs) and master limited partnerships (MLPs). Companies like Energy Transfer (ET) regularly offer distributions that look far more generous than traditional corporate dividends. At first glance, the numbers are appealing. For example, ET currently pays about $1.32 USD per unit annually, or $0.33 per quarter. An investor holding 1,000 units might expect $1,320 USD in yearly cash flow. But the reality is very different for Canadians who hold LPs or MLPs in tax-advantaged accounts like RRSPs or …

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