BIP vs BIPC for the average investorI have been very interested in the Brookfield companies and did my investing in BAM and BN after the recent articles here. I am very interested in expanding to BIP or BIPC but was curious what folks think. My understanding is that if I purchase BIPC it behaves like most stock holdings with no additional tax implications save for the 1099-DIV and Cap Gain tax. However if I buy BIP my understanding is that I am considered an owner of the partnership, I need to file a K1 tax form, and there are no voting rights. It doesn’t seem too complicated a matter and with BIP trading at a 25% discount to BIPC with the same dividend payout, is it a better choice to go with that holding? I should note I would hold this in a non-retirement brokerage account that allows DRIP.
Could folks weigh in with their experiences with BIP and the K1 and the comparison of the two if you have or do hold both.
Thanks!
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Good questions. I haven’t looked at the details of the infrastructure funds, mostly because I prefer the manager (BAM) and the discounted conglomerate (BN), but the fund yields are certainly better… tax considerations are probably a meaningful part of the calculus, so it may well vary based on your circumstances.
Thank you for the response. It’s so interesting to me that the spread is so great between BIP and BIPC, as opposed to the other Brookfield listings of the same ilk. Still looking to see if either are worth adding to my portfolio.