Are their any MLP funds and do they have to deal with the K-1 at taxtime. Thankyou, Porciuscato, BadB , and anyone else that contributes to this board. You guys are way out of my league.
The fees for MLP funds are way too high, and the new MLP funds have no track record. Why not just go to Yahoo and get top funds in MLP industry, thats what I did and am much better off.
And the K1 problem is not much of a problem at all. My tax preparer gets info from brokerage summary and files, or easy to do yourself on Turbotax.
as for Line, what states are you deemed to have taxable income? I tried to get info from their web site but it asked me for my holder info and did not own any in 2007. the line that I do own is in a taxable account but what would happen if I bought line in my ira?
<< No one typically owns these MLP's in non-taxable accounts due to UBTI problem in IRA type accounts >>
That isn't quite accurate. LINE, as but one example, has been throwing off UBTI losses, not generatiung taxable UBTI. The LINE losses can be setoff against the UBTI of other MLPs or carried forward to setoff UBTI in future years.
It is not a simple matter to answer your question -- most tax advisors seem to say "ignore the state tax returns." That is often safe since the MLP distributions are partly non-taxable return of capital (LINE was 100% non-taxable return of capital in 2007), one major producing state (TX) reputedly has no income tax, virtually every state has a standard deduction, personal exemptions and other odds and ends that eliminate taxable income from partnerships unless you are a big holder.
The difficulty of responding for any one individual's situation is compounded by the fact that every MLP reports different amounts of return of capital, every partnership has varying operations by state, your holding period in a year affects the allocation, etc.
This is where the "consult with your tax advisor" caveat is always appropriate.
Thanks a lot for the feedback, appreciate it.
I know oil is low (right now) but can't believe how this stock has underperformed compared to others recently. I couldn't resist and bought some Jan calls for $2.80 today - gotta believe this will move eventually.