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Kinder Morgan Management, LLC Message Board

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  • nsupper1 nsupper1 Feb 1, 2009 4:37 PM Flag

    Basic KMR Dividend Question

    Sooner. If kmr issues a stock split is it treated like a DRIP and what is the tax treatment. I like the return of capt. on the kmp> I am retired and would hope would never have to pay the tax. My estate can do that. I am thinking abt some of both KMP %KMR

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    • nsupper1 -

      For tax purposes, I do not believe it is treated like a drip (even though it functions like a DRIP).

      For tax purposes, a stock split re-allocates the cost basis over the shares owned after the split.

      Gain or loss is only calculated upon a sale. The gain/loss would always be capital (either short or long term depending on holding period).

      The only tax you would pay would be upon a sale of some or all shares.