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One important distinction must be made here: While the MLP's income is passed through to its investors for tax purposes, the actual cash distributions made to unitholders have little to do with the firm's income. Instead, cash distributions are based on the MLP's distributable cash flow (DCF), similar to free cash flow (FCF). Unlike dividends, these distributions are not taxed when they are received. Instead, they are considered reductions in the investment's cost basis and create a tax liability that is deferred until the MLP is sold.

In an MLP, instead of paying a corporate income tax, the tax liability of the entity is passed on to its unitholders. Once a year, each investor receives a K-1 statement (similar to a 1099-DIV form) detailing his or her share of the partnership's net income, which is then taxed at the investor's individual tax rate.

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SQQQ shares accelerated above the $16 resistance level in mid-December as the broader market fell away sharply. The price has recently retraced to test the initial breakout area. A spinning top candlestick pattern printed Friday that shows indecision between the buyers and sellers. Those who wish to trade this ETF should wait for a pullback to the $15 level, where the price finds support from an uptrend line dating back to early October and the 50-day SMA. Consider sitting a stop slightly below the 200-day SMA and banking profits near $21, where the ETF may encounter resistance from the December swing high.

CVS stock is trading sharply lower after fourth quarter earnings, with reduced guidance reflecting a more realistic view of operating issues generated by the 2018 Aetna acquisition.

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