what I get from my reading, Lnco pays 72 1/2cents distribution with 1 1/2cent held in reserve for taxes so
unit holders get 71cents. So now taxes have been paid for the remainder of 2013 and unit holders are
to get the entire 72 1/2 cents.
What happens in 2014 when they are paying 77cents? Is 1 1/2cent held back for taxes and we get
75 1/2 cents.
The way I understand it is LNCO buys units from LINN which are taxed on distributions and ROE. LNCO handles the MLP taxes, K-1, etc. and takes a small cut (your 1.5 cents) then pays us LNCO shareholders a "normal" dividend and we are taxed at the "normal" divi rate because Lnco shareholders own shares and not units.....????? Clue me in if I'm wrong...but that's why I bought Lnco was to avoid the tax hassle of an MLP...???? I made a killing on KMP a coupke years back and my tax guy didn't think the K-1 was that big of a deal tax wise but I think if you make over $1000/yr on K-1 (MLP) then the taxes get to be a headache? Once again..correct me if I'm wrong....
"In prior quarters, LinnCo's dividend included a reduction of $0.015 per share as a reserve for taxes, which LinnCo now estimates to be zero for 2013. Therefore, LinnCo's dividend for the first quarter of 2013 is approximately two percent higher than the dividend for the fourth quarter of 2012."