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Old 07-27-2015, 12:52 PM   #21
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Good point, if you want an investment that you have to keep till you die or else you face tax hell buy an MLP. Oh buy they way, Kinder Morgan dissolved their MLP structure because they believed the normal stock dividend structure would allow them to provide superior value to the shareholders. They went into great detail on this when they dissolved the MLP as to why a normal stock structure would allow them to provide superior value to the shareholder. That being said I have a big gain in EPD as well. When I sell this i'll be able to do my taxes on turbo tax, real easy.
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Old 07-27-2015, 12:53 PM   #22
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Quote:
Originally Posted by Slow But Steady View Post
If I hold my MLPs forever, I'll never experience the big capital gains that would make me have to "pay the piper."

Instead, my basis, which is decreasing as the MLP pays out in the form of return of capital, will be stepped up for my heirs upon my eventual demise.
That was my plan with KMP, didn't work so well.
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Old 07-27-2015, 05:45 PM   #23
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That was my plan with KMP, didn't work so well.
There is that.

I seem to recall that there are also some bad consequences if your basis ever goes to zero. That's unlikely, though, if the partnership is making ongoing investments.
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Old 07-27-2015, 06:17 PM   #24
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Originally Posted by Slow But Steady View Post
There is that.

I seem to recall that there are also some bad consequences if your basis ever goes to zero. That's unlikely, though, if the partnership is making ongoing investments.
I think a successful partnership held long term would very likely go to zero if the you did not add to your holdings from time to time.

I have used royalty trusts on and off.for years. Here the rules require that every separate buy be accounted and depreciated separately. So you may get to zero basis on some of your units, while still having a positive basis on others. This is actually ok, as when cost depletion is over (ie. when a tranche has been depreciated to zero), you can use percentage depletion.

Ha
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Old 07-31-2015, 10:53 PM   #25
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I hope to have the privilege of paying huge tax bills as time goes by, last thing I want is 10 billion dollars of untaxed equity when I die


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