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Kinder Morgan Management LLC Message Board

PSHONORE 6 posts  |  Last Activity: Jan 4, 2015 3:07 PM Member since: Mar 8, 2006
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  • Reply to

    K-1's

    by hh77 Jan 4, 2015 8:46 AM
    pshonore pshonore Jan 4, 2015 3:07 PM Flag

    No, they show up on a 1099MISC and get reported as royalties on Sched E. And get ready to calculate depletion which defer good part of the taxes

  • Reply to

    Tax loss selling

    by haa6451102 Dec 15, 2014 3:21 PM
    pshonore pshonore Dec 16, 2014 10:22 PM Flag

    You guys need a basic MLP tax course. Distributions LOWER your basis (so do operating losses, depletion and intang drill costs). Operating income increases your basis. When you sell, your adjusted basis is subtracted from sale proceeds to get total gain. The MLP will tell you how much is taxed as ordinary income (due to recapture of depreciation, depletion, etc). The balance cap is gain/loss. The key is there is almost anyways ordinary income which cannot be offset by the cap loss.

    LNCO is not an MLP - it pays a dividend that will probably be ROC. That means not taxable but received but it also lowers your basis. However when you sell your gain is all Cap Gain - no ordinary income

  • Reply to

    tax loss sales

    by fatdog12413 Dec 11, 2014 2:56 PM
    pshonore pshonore Dec 11, 2014 7:14 PM Flag

    Sorry, that's incorrect. When you sell, you can use specific id to pick any shares you wish. However if you sell ANY shares at a loss, and purchase replacement shares in either the 30 day period before the sale or thirty days after the sale, you have created a wash sale. You don't get to take the loss at that time but can use the loss to increase the basis of the replacement shares meaning the loss will be delayed until you sell the replacement shares

  • Reply to

    tax advice please

    by colonelflashmanvc Dec 3, 2014 1:28 AM
    pshonore pshonore Dec 4, 2014 10:46 PM Flag

    On the K1, take the number in Box 1 and subtract from it the number in Box 13J and the number labeled 20T1 on the bottom of the State Schedule. If the resulting number is negative, you most likely owe no tax except on the interest of $95. If the number is positive, you can deduct any prior year unallowed losses (for the same MLP) to reduce it to zero.

  • Reply to

    Shorted share suprise!

    by marionpolk2000 Dec 2, 2014 9:58 AM
    pshonore pshonore Dec 3, 2014 1:26 PM Flag

    For everyone who thinks this is an urban legend - YOU ARE WRONG. TD Ameritrade loaned shares of a Muni CEF of mine to a short seller. They also gave me a payment that matched the dividend plus made up for the taxes now due. Actually this is not a problem for a C-Corp (LNCO) or a CEF. Much bigger problem for LINE and other true MLPs

  • pshonore pshonore Nov 7, 2014 1:45 PM Flag

    I've owned VNR since 2008 and have had "substantial" amounts of UBTI in most years ( $1.25 per unit) At that rate, 800 units would put you over the $1K limit. Mine is held in a taxable acct so its not a UBTI problem, but that does mean I'm effectively paying tax on 1/2 the distribution. Not a big deal because you're going to pay tax sooner or later and that reduces the taxes due on sale big time and spreads it out. It also keeps your basis from getting to zero which causes distributions to be taxed as received (as LTCG) By the way, UBTI differs for everyone.

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