Wed, Oct 22, 2014, 9:02 AM EDT - U.S. Markets open in 28 mins.

Recent

% | $
Quotes you view appear here for quick access.

Kinder Morgan Energy Partners, L.P. Message Board

  • chickemmen2002 chickemmen2002 Oct 17, 2011 1:46 PM Flag

    MASTER LIMITED PARTNERSHIP NO GOOD FOR ME.

    A master limited partnership like KMP is set up, gets to involved with taxes for me to mess with. There are to many other good companies to buy stock in than to mess with something like that. My feelings is that that kind of investment gets to kinky for me to mess with.

    THE GOOD CHICKEN

    SortNewest  |  Oldest  |  Most Replied Expand all replies
    • As long as you hold KMP, Most of KMP's distributions are tax deferred as a return of capital. I have held it through 2 recessions and have gotten back as distributions every penny I paid for the stock which I still hold. This is like eating your cake and having twice as much as before. At tax time, the company gives you instructions as to how to handle the tax reporting.You can even call them if you need help. KMP has been a money machine. I believe it understates its real income. The price right now is a little high.

    • I did not like the K-1 so I traded in KMP for KMR. It is cheaper with the same dividend. No K-1, no recapture, and no 1040 until you sell and all income is capital gains.

      I've had 1 do better over the last 8 years but several that have not done near as well. KMR works like auto dividend reinvestment so it has a known good method of to grow assets as its basis. Ask Warren.

    • I forgot to mention in my message they call that tax income from "Unrelated Business Taxable Income" (UBTI).
      If your account is with a company like Charles Schwab you can authorise them to send the cash to the IRS

      THE GOOD CHICKEN

    • I have been dealing with the "tax issues" for several years, thanks for enlightening me...you probably should cover now.

    • You are one real dumb bunny.

      • 1 Reply to jlbarcher16
      • Now smart guy tell me the tax treatment you get when buying stock in KMP which is a MLP in an IRA or a retirement account.
        Well I will tell you since you are so smart on taxes.
        First you are limited at $1,000 distribution tax free per year with a form 990-T filed from the company. Next when you recieve your K-1 if you are paid over a $1,000 a year in distributions in your IRA or retirement account it is taxed as regular taxable income, just like interest from a bank on a CD, or treasuries etc. If you don't do this you will be charged a penalty and interest by the IRS.
        Now after taking my time to explain tell me I am wrong again.

        THE GOOD CHICKEN

    • It sumed it up the only thing you don't get the same tax treatment on a MLP as you get on a common stock dividend only pay 15% like Warren Buffett, Bill Gates, and me. Did you read it? How does that grab you now?

      THE GOOD CHICKEN

    • The point is, that the paperwork is easy, the returns are great, stable, and fairly low risk...and you hold a short position, and want people to sell.

      Did that sum it up pretty well?

    • I don't like to argue just get the point across to some people.
      I have not done to bad at all in the market the last 20 or so years myself.

      HE GOOD CHICKEN

    • KMR avoids the K-1 problem. Ditto for EEQ. But the two major tax programs both take care of K-1s. If you have a substantial amount of money invested, you should use a CPA. They give great advice, sometimes after the fact, but its a second person for discussion.

      • 1 Reply to lincolnparker60614
      • Messing around with the IRS & the schedule K-1 I have to put up with by investing in KMP is what I was talking about. I have gotten into this kind of thing before I am no dummy.

        MLPs must mail an IRS Schedule K-1 to each of their unitholders every year. This Schedule K-1 reports the unitholder's allocated income, gain, loss, deduction, and credits. If the unitholder's taxable partnership income for the year is negative, then this is considered a passive loss under the tax code and may not be used to offset income from other sources. Instead, the passive loss may only be used to offset future income from the same MLP.

        Although unitholders are generally limited in their liability, similar to a corporation's shareholders, creditors typically have the right to seek the return of distributions made to unitholders if the liability in question arose before the distribution was paid. This liability stays attached to the unitholder even after he or she sells the units.

    • You should steer clear of this stock. You don't understand it. Spend more time reading and less time posting.

      • 1 Reply to snorton48
      • "A master limited partnership like KMP is set up, gets to involved with taxes for me to mess with. There are to many other good companies to buy stock in than to mess with something like that. My feelings is that that kind of investment gets to kinky for me to mess with.

        THE GOOD CHICKEN"

        I agree!

        A Moron like you should invest in "many other good companies" like NFLX & AMZN for example which will no doubt make you a fortune!

        And there are no K-1's to mess your little fantasy up.

        Ayuh

 
KMP
93.49Oct 21 4:03 PMEDT

Trending Tickers

i
Trending Tickers features significant U.S. stocks showing the most dramatic increase in user interest in Yahoo Finance in the previous hour over historic norms. The list is limited to those equities which trade at least 100,000 shares on an average day and have a market cap of more than $300 million.