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Compass Diversified Holdings Message Board

  • upwardmo upwardmo Aug 11, 2011 10:18 AM Flag

    distribution

    To any knowledgeable holders:
    Is this distribution tax-deferred like many other MLP distributions? Is it partly capital gains or ROC? Any help would be appreciated. Seems like a great buy here.

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    • In case it helps, for 2010 on my tax return it seems about 75% of the CODI distribution was taxable. About 45% of the distribution was interest income and a little less than 30% was treated as a dividend (all of this dividend was treated as a qualified dividend).

      Also, there was investment interest expense that might be deductible per IRS Form 4952.

      Incidentally, at CODI's current price levels I've been a buyer too as the Q2 report and conference call seemed OK--time will tell whether we're missing something.

      Good luck,

    • No, the distribution appears to be entirely taxable with part of it labeled qualified dividends.

      For the 2010 tax year, the K-1 indicates about 1/4 taxable as ordinary dividends, 1/4 taxable as qualified dividends and 1/2 taxable as interest income. Note that I hold this in a IRA deferred tax account so did not run the numbers through my turbo tax. I might add that so far this has been an excellent holding for me in an IRA. There was no unrelated business taxable income in 2010. I don't recall any in the past.

 
CODI
16.47-0.25(-1.50%)May 22 4:02 PMEDT