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Breitburn Energy Partners L.P. Message Board

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  • rlbeard6734 rlbeard6734 Jan 19, 2012 12:56 PM Flag

    ng drilling partnership

    this is not a stock it is actual ownership of the gas well, not very liquid, you get into this for
    1) short term tax write offs of 90% first yr
    2) long term play on NG
    3) well run program
    4) monthly distributions exceeding 8% annual with a 15% depletion allowance (as I am retiring this along with #1 are my main incentives) as I dont figure that I can do that well in the stock market as a guarantee but still have 3X stock market as this NG partnership. I need the guaranteed income for living and I didnt want to give uncle sam 45% of my retirement money this way he is paying my taxes on his part of this investment and my earnings are tax free.

    example:
    500k invested taxes would have been 225k
    8% return is 40k per yr with 15% tax free due to depletion allowance is 34k taxable or 14k so I get 20k
    now if i paid the taxes and had 275k and it made 8% in the market that would be 22k which I would pay 9k in taxes leaving me with 13k. to make the same return I would have to make 12% in the market guaranteed.

 
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