MLPs are not taxed at the Federal level. All depreciation and other expenses are passed on to the owner. MLP owners receive a K1 for tax accounting purposes.
Owners of MLPs defer the majority of the taxes that would otherwise be due.
MLPs are an efficient way to transfer wealth to the next generation. Tax depreciation recapture is eliminated at death.
Under current estate tax law, upon the death of the owner, heirs of MLPs get a stepped up cost basis eliminating all capital gains tax and deferred income tax.