An important aspect of buying KMI instead of KMP is that the new KMI will absorb all the gain or loss into their profit and loss record so that you won't be directly involved in the tax puzzles of the "conversion" around the end of this year. Most analysts are projecting the new KMI will have better qualified dividend., and give no headaches for your tax return involving the passive activity loss carry-over and other problems.
No they will not provide a cumulative total you need to add up all your past K1's if you don't have them you can call For tax information, please contact Tax Package Support at 800-232-1627 and they will fax/send you them.
RBC Capital Markets today raises its price targets for all the companies in the Kinder Morgan complex in the wake of the deal that wraps them all up under the Kinder Morgan Inc. (KMI) ticker. Here’s RBC’s breakdown:
RBC ups its KMI price target to $45 from $40 (it’s currently trading at $41.31 Tuesday)
RBC ups its Kinder Morgan Energy Partners, L.P. (KMP) target to $109 from $83 (currently $98.24)
RBC ups its Kinder Morgan Management, LLC (KMR) target to $112 from $83 (currently $100.25)
RBC ups its El Paso Pipeline Partners, L.P. (EPB) target to $47 from $35 (currently $42.46)
RBC says it’s not making changes to any of its other estimates for any of the four, and the change in the KMI target price is the driver for the other three changes and assumes a target yield of 4.1%. From RBC
read my previous topic. If you want to convert to KMI, I think it is better to do it now. You will end up with more shares and lower tax liability. The higher KMI/KMP goes the worse it is for you.
Ditto. I have some in a IRA. I have read and looked for an answer to what the tax treatment will be. Haven't found what I consider to be a good answer. One thing is for sure. If you pay a tax on some of it held in an IRA, the it will be taxed again when you withdraw. That is double taxation, which I believe is illegal. So guess what I am not complying.
So. If you like the deal, and plan on keeping your KMI shares, and buying more KMI with the $10.77---then the higher the price goes the WORSE it is for you. If you wait and KMI goes to lets say $50. So you will have $9 more of cap gains to pay tax on, but still get the same # of shares. Plus you will get fewer shares of KMI for your %10.77 at $50 than $41. And if you get the Oct dist it will lower your basis again and raise your tax. So it seems selling now and buying KMI at this level works best. Of course if you think KMI will sink back to $38 or lower-----well that's something else
I guess I am not as smart as boboilandgas but I cant figure out from last year's K1 what the passive activity loss for the year was. Can anyone help? Also, will Kinder Morgan provide a cumulative total for this since year of purchase.
Question - so does that mean the stock price of KMP is basically irrelevant? The only thing that matters is the price of KMI?
I ask because RBC just raised their KMP target to $109 (!) this morning. They raised their KMI target to $45.
check your previous k-1. If you don't have it...call your broker. No broker? call your CPA..no cpa? your screwed.
I appreciate all the comments on this board and would like to ask how a kmp holder can determine passive activity losses from previous years.
the tax treatment whether you hold into conversion to KMI or sell now will be the same for you. The only difference is where KMI will be at the conversion date. As others have mentioned KMP price is now tied to the KMI price. That is the only unknown here. Your taxes will be the same if you hold or not because you will be forced to convert and unfortunately the conversion from an MLP (will be dissolved) to the KMI c-corp will make you sell those units and pay tax on them.
Now for your personal tax treatment you will have to talk to your CPA..mine told me she will not know exactly the tax situation until the K1 comes out for 2014. Everyone will end up paying ordinary income on the deferred tax units and long/short term gains on the price appreciation.