Technically yes since 1 share of LNCO holds 1 unit of LINE. However, investors like the fact that LNCO can be held in a tax deferred account without issue. I would guess its supply & demand and that there aren't enogh LNCO shares to meet demand from investors trading in tax deferred accounts.
LNCO should issue more shares (buying an equal amount of Line shares) to meet demand and use the spread as an additional dividend.
if you're going to switch to LNCO (because you don't want to deal with K-1 reporting in regular account (although made straightforward with turbo tax), the tax consequences of switching aren't an issue, you're not worried about what will happen to LNCO price vs. LINE when new shares are issued for the BRY purchase, you don't mind getting a lower distribution yield, etc) then wait for the spread to go down. It hit a low of 1.3 yesterday, versus 2.1 right now. Be patient and watchful over next week or two and switch when the spread is low. Think like a pairs trader
I just compleed my tax returns and zero taxes on my LINE distributions. Plus it has a higher yield than LNCO. LINE will catch up after tax season and people figure out that K-1's are not that difficult.
actually - it ccould be worth a lot more than .4% - Remember - they will issue a 1099 not a K-1.
With the K-1 you will also be responsible for NON RESIDENT STATE INCOME TAXES on your K-1 earnings for each state the MLP works that has a state income tax. Texas does not, Florida does not - there are many others - You can bet - if you are loaded up on MLP's issuing k-1's - that the states will get the final closure of the MLP and may ding you pretty hard for unpaid state income taxes. Begins to make LNCO look pretty darned good - along with AMLP and a few others...
capt.bill - Õ¿Õ¬