Originally Posted by clifp
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.