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Enterprise Products Partners L.P. Message Board

  • cactusjacker1 cactusjacker1 Aug 22, 2005 12:54 PM Flag

    "EPE" news

    Will be priced after the close of trading tomorrow between $26-$28. With an expected yield of 3.7%
    Will be on the trading floor with the opening bell on the 24th....Good luck to all
    C.J.

    SortNewest  |  Oldest  |  Most Replied Expand all replies
    • Here's how the taxes work (I think):

      When you sell units,

      1. Your gain derived from the difference between your sale price and your purchase price is treated as capital gains and subject to 15% tax if long term.

      1. Regular income tax is paid on the difference between the price you bought the units at and their book value the day you sold. The book value is equal to your purchase price plus capitalized expenditures attributed to your units, minus depreciation, depletion and some amortization.

      The good thing is that your K-1 will tell you what is capital gains and what is regular income. But for planning purposes, I believe that this is the real story.

      ROM

    • Re to:bz
      "I have read are vague about whether the entire reduction in basis is due to depreciation, and thus recapture, or whether a portion is due to other items and subject to the 15% rate. TIA for any help."

      I sold 2, BPL, and TPP, to buy KMP, and PAA. Proved to be a good move.

      I paid long term cap gains on unit price gain, and income rate on the distributions I recieved.

      And as I have said before, I do not let tax rates make decisions.

      PAA +55.7% since 12-18-03.
      KMP +36.5% since 5-25-04.

      Counting distributions, but not reinvested.

      By the way:

      I make 7% and pay 25% income rate.
      You make 6% and pay 15% qualifed dividend rate.

      Just an example.

      Who wins?

      -chart-

    • Don't mind the k-1's, but have yet to get a good understanding of what the % tax rate will be upon sale, since I haven't sold any MLP's yet.

      I understand that I will be paying the ordinary income rate on the depreciation recapture, but the sources I have read are vague about whether the entire reduction in basis is due to depreciation, and thus recapture, or whether a portion is due to other items and subject to the 15% rate. TIA for any help.

      BZ

    • So . . . for those of us without connections . . . it will be available above $30, for a yield below 3%.

 
EPD
74.60-2.23(-2.90%)Jul 31 4:08 PMEDT

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