Go the the CLMT website and go to Investor tap, then K1 information. Once you log in, you can access your K1 on-line, there is link on the page to calculate your gain/loss and if it is capital or ordinary. It takes into effect your equity account as presented on the K1.
I think one of the questions is whether you think you will hold the stock forever, are you investing for the dividend, and what you think the stock price will be in the future; many mlp's are bought for the dividend that they provide rather than the expectation that the stock will zoom upwards (like a google; so having a huge capital gain from the stock price doubling is a great outcome for you, but i am in the camp that believes that stocks are cyclical and go up and down so i am happy to sell if i have a substantial profit and buy back (of course that also means i am often paying short term gains as well as long term, but would prefer to pay taxes on a gain than see the stock travel back to my purchase price); another way that i harvest some of my gains (although again short term is to sell calls against the stock or naked puts if i want to purchase the stock back at a lower price) - i think it really depends on your perspective on the stock and where you think the market is headed; not sure you can answer either of those questions, but also not sure you will know where tax rates will be in the future and your particular tax bracket when you decide to sell in the future; you can also do the obvious and sell a portion and let the rest ride
Except that your suggestion in the last sentence about selling a portion complicates your taxes with an MLP. I understand Turbotax which does everything else related to K-1s pretty well, does not handle partial sales correctly without complex manual intervention. The general consensus regarding MLPs is either to sell a full position or none.
In a taxable account, you mean?
Why would you do that?
You would have to pay taxes (including ordinary income rates on all the distributions you received during your holding period).
So that would leave you a smaller amount to repurchase with after taxes.
Meaning your future income is correspondingly reduced.
I can't see any reason to do that at all - seems like only disadvantages and no advantages to me.
What is your reasoning behind wanting to do it?
my reasoning, though i'm not able to think it through completely, was to take advantage of 15% tax rate on a substantial gain i have rather than a 35%+ rate down the road on that same gain (i.e., as distributions "convert" that LTCG into ordinary income).
That is my reasoning and would like to get some input. I guess its not everyday that an MLP generates a 100%+ gain, but that is exactly what happened here.