No, the cash paid out in the merger is considered sales proceeds, not return of capital. Fractional share cash is sale proceeds too.
is the cash paid out as a result of the conversion considered ROC. i'm also thinking one of my brokerages doesn't do fractional shares and may pay cash.
Bill, a suggestion, if I may. I should consider going away now. You are not making too much sense and as a result you are getting a ton of thumbs down. I know, I know, you are one of "God"'s chosen, those few who care in this old wicked world, but most people see you as zealot and pretty soon they will all stop replying to your posts.
This question hasn't really been discussed much on the board. Kinder Morgan will announce what the conversion price is, and it will have to be within the trading price range on the last day of trading. Your K-1 and possibly some other tax reporting forms will show what your sales proceeds were in the merger. That will consist of cash and the fair market value of the KMI shares you receive. You will know the number of shares you receive, and Kinder Morgan will assign their value at the closing.
Nothing from Schwab that I am aware of. We have a substantial account balance with them, so may be why nothing (at least so far).
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Also, in the upper left hand corner is a link called Projected Gain/Loss Calculator that might be helpful in estimating your capital gain vs ordinary gain.
Hey, whoever gave the thumbs down for this comment, could you try to be articulate and say what it is about the comment that you dislike? Intelligent people do a lot of reading, you know. Just clicking on the thumbs down or making a face at someone doesn't help increase our understanding of anything. Good for emotions, but useless for intelligence. But who needs intelligence. You were born with the intelligence and knowledge that you have.
Once conversion occurs, what is the best approach for determining the conversion price? Is it the end of day price for the first trading day, average between the high & low price for the day, or something else? Forgive me if this has already been asked but haven't had much time to follow the board. Thanks & Happy Thanksgiving!
If a person had a $10 million investment in an MLP, then they probably would have filed form 990t for those years even though the UBTI was negative and the law only requires 990t filing when the UBTI is positive and over $1,000 cumulatively for the year. I'd apply those negative UBTI amounts even if I didn't file 990t's for them. The IRS has the K-1 for all those years.
tppfan points out above that the MLP has been generating negative UBTI in all previous years for most investors, so those negative amounts should be offsetting the depreciation recapture UBTI in the year of sale. The negative UBTI seems to correlate to the ordinary business loss on line 1 of the K-1. The negative UBTI is found on line 20V of the K-1.
So my answer immediately above was incorrect.