Yes, I think you would. But if you have help the investment for 10 years, would anyone know the exact costs basis. People tend to get rid of old tax forms. It's possible a taxpayer could get a notice a few years later. The old IRS computer system was pretty bad.
I cannot recall if the numbers were positive or negative, but for the non-profit I helped, I don't think their auditor was even keeping the K-1s. They have not sold the investment yet.
Most of the times it went unreported was when I had clients that bought into limited partnerships from 1981-1986 when there was ACRS depreciation (real estate could be depreciated over 15 years) and investors could take losses on passive income. When we got new clients into our office and they sold there partnership interests, they had not kept their K-1s (they were lost or thrown out). Then we had to estimate their cost basis. There was no way the IRS could track the cost basis back then, but maybe times have changed.
David, I have been doing tax work since 1992. There is no way, in any way, that people are reporting UBIT in those accounts. When I did tax work for a non-profit that invested in Kinder, they were not reporting this and there is no way it can really be tracked. Not saying that people should not do this. but these are the facts.
BDC Buzz had a nice article on PFLT. Their loans are safer and most are senior secured debt. I'm going to pick up shares if the stock price drops a little bit lower.
Just an idea here, but VNR also has some preferreds. VNRBP is their 7.625% issue and is trading right at par of $25. It's not callable until 4/15/2014, which is slightly unusual as most preferreds are callable in five years.
I was reading a Seeking Alpha article about the company this evening. The yield is lower, but the debt of their companies is more secure. Any thoughts on PFLT? Thanks.
David, I agree that many of those posters have forgotten about us small investors. $20,000 is not a small investment and I have quite a number of investments that are smaller than that.
In my IRA account , I actually own some tax free bonds. And why? Well, the kind I wanted don't come up for sale often and the funds I had available were in the retirement account. I was fine with the 5% they pay and now I have some gains on the price of the bonds as well. I may sell them over to my taxable account at some point in the future, as funds allow.
Generally speaking, perhaps not the best hold in an IRA account. But people have to consider all factors.
I managed some endowment funds for a Museum & Park for 10 years. About five years ago, we decided to invest in Kinder Morgan. Actually, we did not care about the taxes. We just thought they would return 7 to 9% in the long term and we have never looked back.
Thanks for NOT following the crowd.
NRL_Baseball - Yikes, they are a brutal group. You'd have thought he stole my grandmother's wheelchair, based on the comments.
If they have to pay 10.5% in this interest rate environment, then I would have some concerns. You may collect some of the dividend payments, but I would be concerned about getting your principle back.
If you are looking at preferreds, you may want to take a look at LTS-PA. The company is making some good moves and they have little debt. Earnings last week were decent. I'm moving more funds into the preferred over the next few weeks, as funds allow.
I would have probably bought the A shares. According to TD Ameritrade, they went ex-dividend today, so they may open at close to $25 tomorrow. Closed today at 25.58 and the dividend payment is .54 cents.
The A shares are callable at any time, but unlikely they will be called soon. The B shares yield more, but the YTC really knocks this down.
Perhaps some of each shares is the best option? I few years ago I could not decide if I wanted to buy MO or PM, so I just bought some of both shares. Better growth with PM, but MO had the higher dividend at the time.
Plastics is just one word,but Brain Damage is two words.
i'm just not sure how much Brain Damage that Donk has had over the years. Triple Net Property investing has no malls.
Thanks for the information. The company is trading at 150% of book value. Any thoughts on this?