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Old 02-28-2013, 09:06 PM   #21
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Interesting GrayHare....from what I've read most recommend not putting it in an IRA I presume because they already have some tax advantage status with the way they distribute, reducing cost basis and not creating a fully taxable event.
Another problem with holding MLPs outside an IRA/401k is the recapture tax upon their sale, as described at http://seekingalpha.com/article/1091...s-goodbye-mlps
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Old 02-28-2013, 10:18 PM   #22
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Thanks Grayhare. Have printed and will read!

Read it. So I think if I buy the actual MLP part of KinderMorgan rather than KMI or KMR, I will buy in my IRA's. I knew about the ROC and reducing the cost basis and creating a taxable event unless held until death.
What I had not strongly considered was the possibility of being as the article puts it "tax locked". Perhaps wanting to sell but not as willing to do so because of the potential tax bite.

Thank you for the link.
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Old 03-19-2013, 10:02 AM   #23
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I also own KMI. And EEQ and LNCO as well as TRP. No hassling with K-1's in my IRA with these. Speaking only for myself, I do not like MLPs, in or out of an IRA because of the tax headaches. These are not MLPs, but shells to make the underlying MLPs palatable to us little investors.

The yields were good when I bought and I thought they were only going to increase in value due to the current low interest rate atmosphere, their acquisition activities and the prospects for better profits for all aspects of their businesses. I am also placing a bet that the Keystone XL pipeline will be approved by Obama (but my holdings will benefit either way). When more dividends go into the MMA, I intend to buy more EEQ. I also bought two big oil sands producers as any new pipeline capacity in Canada will put bitumen and syncrude into wider markets and they will see higher market prices than the current $25/bbl.
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Old 03-19-2013, 10:41 AM   #24
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MLPs can be interesting, except for their K-1 forms and complicating tax matters. I prefer to put them in an IRA, provided their UBTI is under the limit.
+1
I own 100 shares KMP in IRA. Always watching the UBIT limit so as not to get too tripped up. If you like KMP, take a look at KMI for holding larger positions in a tax advantaged account.
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Old 03-19-2013, 01:08 PM   #25
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Another problem with holding MLPs outside an IRA/401k is the recapture tax upon their sale, as described at Hello Taxes... Goodbye MLPs - Seeking Alpha
The issue with this is overstated in my opinion, first being income must be over 223K for married filing jointly to use the 33% tax used in the example. Secondly it appears to ignore the time value of money and instead assumes over the long term there is not increase in dividends nor an increase in value of the investment. The greater the period of inflation or increase in the value of the shares from an operational standpoint, the greater the case for the deferral of income taxes from a MLP.
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Old 04-25-2013, 10:53 AM   #26
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I've owned KMP for 3+ years, sold some last year to lock in gains. Got back in at ~$82 (wish I'd hit the $77) in taxable account. The things I've seen that cause volitily in MLPs are seconday offerings on individual MLPs, and everyone's concen about how dividends would be taxed at the first of the year, that seemed to drive all MLP's down for a few months.
The only problem I've ever found in these market conditions finding a good entry point.
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Old 04-25-2013, 05:17 PM   #27
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MRG...you did a bit better than me. I got in at 85ish after selling my 79 dollar position earlier in January. Good to see it hit around 92 before exdividend.
Yes, everyone thought things would come down. Everyone calling for a market correction...etc. Guess they were wrong.

I'm still watching SDRL....

Anyone looking at a small cap DCIX (Diana Container Ship) Dividend is 23%. I need to research it a bit more. I don't typically buy small caps.
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