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Linn Co, LLC Message Board

  • sollid_companiess_only sollid_companiess_only Apr 20, 2013 7:38 AM Flag

    Confusion About Tax Status of LNCO's Dividends

    On this board there seems to be general confusion as to whether the LNCO 1099 dividend payouts should be treated as ROC or as dividends. I went to LNCO's home page and LNCO makes it quite clear that the dividend payouts are not ROC. The dividend payouts are taxed at the dividend rates. Here is the info from LNCO's home page:

    Tax Considerations
    • Cash distributions from LinnCo treated as dividends to the extent that LinnCo has earnings and profits ◦Taxed at dividend tax rate


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    • After looking at the website I agree. Since I hold LNCO in my IRA the dividend is not taxable reported on a 1099-div, there is no K1 as you would get from LINE, and if the dividend exceeds the earnings the resulting return of capital does not affect the basis since basis is not a factor in IRA redemptions.
      So I sold the LINE I held in my IRA and purchased LNCO.

      Sentiment: Buy

    • I don't know how much idiocy there is in the world, but it certainly shows up on Yahoo! chat boards.

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