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Kinder Morgan Energy Partners, L.P. Message Board

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  • epholder epholder Sep 4, 2012 11:15 AM Flag

    Zero basis MLP.

    Donedealer, you say that you have received a tax benefit from SOME of the losses allocated to you? What losses are those? As with all losses from passive investments, I'd think that none of them are deductible until your tax basis is zeroed out. Interest, dividend and capital gain income would be currently taxable each year, and would thus increase your tax basis each year, but I'm thinking that there are no deductible losses, absent a sale of some of your MLP units during the year at an actual loss.

    You have only one basis to keep track of and that's your taxs basis. When you sell some or all of your MLP units, you do have to determine what portion of the gain is taxed at capital gain rates, and what portion is ordinary income due to depreciation recapture. The K-1 will give you that info SOMEHOW.

 

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