Talked to Fido who blamed ETP. To make a long story short, Fido adjusted my reinvestment today to a price of 45.362 with more units.
If you average Hi-low for the five trading days prior to payout you get the 47.75 result. Al least thats how it worked with the May dist on the website. I'll check with Fido.
I cannot understand Fidelity 's calculation at all or the fact they show "reportable income" #$%$ more than the actual distribution (since distributions are not taxable as received, that may just be an accounting entry). Their reinvest price was 47.756
It may be 50% of production in terms of BOE, but its significantly less than 50% of revenues and the resulting DCF, etc.
That's true if you look at production in terms of Barrels of energy equiv (Boe). However If you look 2nd qtr revenues, they sold a barrel of oil for $102 (due to hedging) and a barrel of NG (actually 6000 cubic feet) for about $15. Revenues came from Oil were almost twice the revenues from NG. If the price of NG doubled and Oil dropped in half what do you think would happen to net revenues
Depends where it winds up on the K1. If its in Box 18A, that would be tax free interest for Federal purposes. However, it might still be taxable for State purposes when received. Perhaps someone can tell us what's on the K1?
My understanding is Interest is not considered UBTI so if that number is in Box 5 of the K1, you should be ok. Box 1 might be a different story. You can also check Box 20V.
RMD calculations have nothing to do with the K1 but are calculated based on the previous year 12/31 combined balance in all your IRAs (Traditional. SEP, etc). The "4 percent" does go up every year. For example if you are 70 in the year you take your first RMD, you divide your balance by 27.4 (3.65%), the next year you divide by 26.5 (3.77%), the next year you divide by 25.6 (3.9%) and so on. In the year you are 80, you divide the 12/31 balance by 18.7 (5.35). There are lots of calculators on the Web to help with this.
Be sure to enter the numbers in Box 13J (Intangible drilling cost) and 20T1 (depletion). However I'd be surprised if HRB supports those codes. Turbo Tax is by far the best retail software for handling MLP K1 forms
I'd want to check before doing that and estimate how much ordinary income would result from depreciation recapture on a sale of units. Unfortunately the folks who produce the K1 forms don't tell you that. You may have a large capital loss but unless you have cap gains to offset, that won't be of much use (other than 3K used against any income.)
The distributions are technically ROC (as long as your basis is greater than zero). PER may be labeled as a Royalty Trust but for tax purpose it is a partnership. Partnerships are pass through entities meaning they pass through items of income (For PER that would be Royalties and Interest) that go on the tax return of the unitholder, as well expense items (Depletion)that reduce that income. When I owned PER the distributions were effectively 70% taxed (as ordinary income)
SDT distributions like most partnerships are ROC as long as your basis exceeds zero. However Sand Ridge partnerships (PER, SDR, SDT) can pass through on the K1, significant amounts of Interest and Royalties which are considered taxable income. I owned PER at one time and as I recall about 70% of the distributions were effectively taxed as ordinary income due to the pass throughs. YMMV.
Who knows where this goes?. K1 says see Partners instructions but there appear to be none. Turbo Tax is looking for finer breakdown on this item if you do the "quickzoom" to enter additional codes for A,B and F. Admittedly, its a small number and probably is not worth spending a lot of time on.