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Old 03-08-2010, 06:21 PM   #21
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Ha Ha when I clicked the link I got a security warning. Does Investors village charge a fee for the forum?

Second question for the MLP you've had for 25 years, isn't your basis near zero? How do you handle that?
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Old 03-08-2010, 06:32 PM   #22
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Ha Ha when I clicked the link I got a security warning. Does Investors village charge a fee for the forum?

Second question for the MLP you've had for 25 years, isn't your basis near zero? How do you handle that?
Cliff-I have never paid a fee. Maybe I was grandfathered, I don't really know.

As to the long time holding, I have added to it from time to time, so I still have a (slightly) positive basis. However when it does go to zero, no real problem as I believe that most of the taxable income will be capital gain.

I do have a royalty trust with a zero basis, but althoukgh cost depletion has petered out, I am still somewhat sheltered by percentage depletion. These things are truly the gift that keeps on giving. I bought this RT even before the MLP. At the time the independent engineers (DeGolyer) gave it an 8 year reserve life. So 25+ years later, it still has an 8 year reserve life and I have received many times what I paid for the trust in distributions.

However, this is all very sensitive to who the petroleum engineer is, what kind of formations the reserves are in, etc. Some of them from back in the 80s have crapped out long ago.

Ha
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Old 03-08-2010, 09:54 PM   #23
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Ha Ha when I clicked the link I got a security warning. Does Investors village charge a fee for the forum?
I've been registered there since Feb 2009, never paid a fee. -ERD50
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Old 03-08-2010, 10:17 PM   #24
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ok well they want to charge $8.95 a month now, so being LBYM I'm not joning.
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Old 03-08-2010, 10:51 PM   #25
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Old 03-09-2010, 01:30 PM   #26
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The $2 distribution is actually treated as recapture of depreciation and taxed at ordinary income when you sell it.

The good news is Turbo Tax handles most of this for you automatically.
Ok- good info, I was pulling my info from here:
National Association of Publicly Traded Partnerships- PTP 101


What does this mean for PTPinvestors?
Because the PTP itself does not pay tax, it is able to pass along more of its earnings to its investors than it could if it were in corporate form. It does this in the form of quarterly cash distributions. Rather than taxable investment income, they are treated as a return of capital and reduce the partner's basis in his partnership units.

Agreed - the tax software packages do most of the heavy lifting for you.

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