1) The negative number becomes larger. You will simply continue to owe taxes at a LTCG rate on the increase in the negative amount.
2) If it was negative on your 2013 K-1 and you buy more units, but the capital account is still negative you will again owe tax on the negative basis. Your buying more units simply put $$ into the account.
3) If your basis is -$5000 buying $6400 worth of stock would probably not make the capital account positive. You would take the 2013 capital account, add in any $$ contributed and then subtract all your distributions and any allocated losses on line 1.
Very hard to predict Line 1 allocations, they have been everything from close to zero to huge negative numbers over the years for me. Have no idea the amount of distributions you received so cannot estimate if $6400 would do it. The total of distributions PLUS the allocated losses would need to be less than $1400.
Totally agree on the buy for APL. Developing an organic project at a 6-7X EBITDA vs paying a 10+X EBITDA for a buyout makes little sense in the longer term.
Coal on the other hand is not dead. It costs about $3 per mmbtu vs $4.45 right now for NG. The utilities are going to continue with there current path with any plant that is not ancient. Peakers are great for NG. Baseload still is problematical. The recent shortages of NG showed the folly of moving too fast without a distribution system for NG. Combine that with prices lower in the future and thus little gas in storage and well . . . .
Cirsuit - Easy. Open the "ref" K-1s and write down the numbers. There will be probably two and maybe 4 so no big deal. Open up the K-1 for ETP and go to where the carryforward losses are noted. Add the numbers from the "ref" K-1 to the numbers already on the ETP K-1. Last, delete the "ref" K-1s for APU/SXL. About 2 or 3 minutes if you use "Forms:".
The K-1s are not hard at all. Simply follow the directions.
#1 Using the spread sheet with k-1 for ETP/APU/SXL simply set up a k-1 entry for each one. Use the ETP address. For APU and SXL name it APU ref ETP and SXL ref ETP.
#2 Enter the numbers using FORMS. it only takes a inute or two for each one.
#3 When the subsiderary is finally sold (like ETP with EPD last year) you take any passive losses that were accumulated and add them to those from the parent (ETP). Same method if you sell ALL your ETP units.
It is necessary because you actually own units in both APU and SXL as a partner in ETP.
It goes negative when the combination of distributions and allocated losses are more than your distributions. What it means is you have a LTCG of 2473 for last year to pay taxes on. TTax can handle this or any competitent account. Go to the National association of Publically Traded Partnerships for a good explanation or visit the IRS web site and do a search for PTPs or MLPs.
The way to get it positive is to contribute money by buying more. No other way.
You obviously have no understanding of funds from operations! That one was $4.82C and has continued to grow. BTE spends conservatively and issues almost no new shares except through the DRIP. Since theri dividend is fully covered and about to increase do you really think a payout at $2,64C says BTE should have a yield of a tad over 20%?
Are you suggesting that BTE is responsible for the huge WCS/WTI spread? Get real. The spread had now returned to the normal 20% area and they have hedged to lock more in at that level. Add in another $10bbl and you have a fantastic quarter. The market evidently agree with me as BTE now up some more since the secondary. Got to remember eventually we will have another pipeline to get canadian heavy oil out. What does that take the spread to? 15%? 18? Time will tell.
Yes - You go back inside each of the "dummy" K-1s and total up any passive losses. Then simply make a list of them. Next delete the dummy K-1s from this years return. Next open up the main (ETP/EPD/ETE - i presume) K-1 for this year and add any carryforward numbers to those already there. This you do manually and simply plug in the new higher number. It should not give you an error message.
No. Chevron announced they were selling. APL had or has a right of first refusal, but the RoR on the pipeline is very low (under 7%). Having the entire interest for sale makes it beasier. Was suprised the preferred being issued now instead of ATM. Probably a good deal as APL yields 8.3% and should be able to get an increase of about .20-30 to $2.80 area by YE 2015 with IDR waiver. This suggest preferred actually cheaper way to issue capital. Suprising part is the $250M isa so small it really does not make much of a difference.
Agree except KMI announced the drop down almost a year ago. No need to drop and it was not done at a very attractive rate KMI/KMP have their own significant problems that go well beyond Hedgeye and barrons.
They did not sue for that. They sued for damages in the implied partnership and for EPD then shopping elsewhere. ETP got award of the $3`19M for a partnership agreement that was violated and EPD won on the fraud portion. Not likely to be anything over the $319M. Legal expenses are the responsibility of each side in the USA. EPD has posted a bond - thus no interest to my knowledge - and both will continue to make lawyers rich although am sure all concerned here on retainer or eployees.
The HR Block program has some issues with K-1s. It has a drop down menu for section 13 just like TTax but has a problem with passive losses in computing the correct tax.
Couple of things. There were no added dividends paid in Q4 - this call. And will only be a few $$ paid in Q2. Wondering also how dividends paid effect earnings? The property BTE bought will be immediately accretive and BTE is also looking at getting rid of some other non-core assets. Liked the old CEO better, but BTE is operating the same conservative way as before.
The problem today is the WTI differential and difficulty in getting Canadian heavy to market. That is not BTEs fault, but rather the President of the USA. Add in another $10bbl and BTE gets rich. Similar issues for the other like producers except they are not looking to increase their dividend. Also lots of questions about Aurora. Anything australian sound fishy to most in NA.
Completely agree. This is truly a significant move. They are spending some $$ and today with all the cutbacks, Shell is not going to throw evwen say $10M away. If Shell moves forward then a lot of the picture changes regarding pipes and other companies moving to build. Chrx. thoughts?
There are not enough shares available without bidding the price up big time. A 1M share buy would move MWE about $5. Too many shares held by institutions and insiders (about 790% if memory serves me correctly).
The return on the investment was not good. Certainly easier to sell a 100% interest. Just another in a long list of poor investments unless they can sell for something north of $110M. A good investment would have earned about 15% a year. Thus 45% on $85M is about $40M less the $14M they got is about $26M.
First - WBuffett is not interested in buying a part of MWE as there is not enough liquidity to do so unless he bought out EMG.
Second - MWE is an investment in the future that is steadily moving further and further out to achieve any real growth in distributions. Until it gets its capex growth budget under 10% of EV and preferable under 5% there can be little DCF growth. The problem is the JV agreements are continuing to cost MWE money - DCP buying at a contributed capital basis - and there is both a build cost along with an 18 month ramp up that at times has been optimistic.
Is MWE a hold - absolutely. But MWE is not likely to move much in 2014-2016 because of the organic drag which is now up to some .50 per unit a year. MWE is choosing to get everything built now and wait on DCF. Good comments on the last post. I agree with B&W that a buyout would not be productive to me, but a double in the unit price is YEARS away. It is going to take 2 years of steady grwoth to return trust to MWE and its predictions and then probably two more for it to show it can do a 10% CAGR. How many are willing to wait for say 5-8 years? I would guess not many. B&W - I completely disagree with your argument as if Buffett did offer say $110 - a number what MWE would trade for if it stopped building out so fast - you could take those $$ and reinvest elsewhere. All the extra would be taxed at LTCG rates. Understand the stepup on death, but I am not willing to die to avoid some taxes. Are you?
Again a simple answer. Go to FORMS and enter the numbers from all the lines. TTax has all the lines. You just need to enter 1 and it gives you the others.
The easiest way is to simply go to "forms" and add any passive losses to the prior years carryforward amount I input the numbers manually so no override necessary if you do it that way. As to the unused K-1s - simply use delete form.