Anyone get their OKS cost basis reset on 7/3 at $52.03 for OKE shares?? TIA
Email to ONEOK Investor relations: "Since this merger will impact the OKS unitholders 2017 taxes, I would like to encourage you to at least update the taxpackagesupport website with estimated gain/loss calculations as of June 30, 2017. I know this would help me to know approximately the ordinary gain vs capital gain in order to meet the IRS withholding guidelines. Better yet would be to make the K-1s available before year end." Answer: Thank you for the suggestion. It sounds like you are aware of the tax consequences as an OKS unitholder. I have included a section from our OKE-OKS Transaction FAQ webpage below that might help you in estimating the 2017 tax consequences. While I understand that it would help to have the K-1 early or to put the 2017 information in the gain/loss calculator, this is not something we are able to do at this time. Please let us know if you have any additional questions.
What are the expected U.S. federal income tax consequences to the OKS unitholders resulting from the transaction and how will the transaction affect their taxes? The exchange of OKS units for OKE common stock should be treated as a sale of your OKS units in a taxable transaction for U.S. federal income tax purposes. A U.S. holder of OKS units should recognize a gain or loss. You can estimate your gain or loss from the transaction through the following process. This calculation is an estimate only. You will not be able to calculate your actual, final tax effect from this transaction until you receive your final Schedule K-1 and supporting materials (expected to be delivered in March 2018). 1. Calculate your estimated consideration received in the transaction by multiplying the number of OKS units you own by 0.985 to estimate the number of whole shares and cash in lieu of fractional shares of OKE common stock you will receive. Multiply the number of whole shares by the closing price of OKE stock on the transaction close date to determine the estimated “sales price.” 2. If the exchange ratio from Step 1 results in a fractional share of OKE common stock, you will receive cash in lieu of the fractional share. No fractional shares of OKE common stock will be issued. Cash in lieu of fractional shares will be computed by multiplying the fractional interest by the average of the closing OKE share price for the five consecutive full trading days ending on the full trading day immediately preceding the transaction close date. Add cash received in lieu of fractional shares to the “sales price.” 3. Reduce the “sales price” by your estimated adjusted tax basis in OKS units. Your estimated basis in OKS units at December 31, 2016, will be outlined on your Schedule K-1 for 2016 that you will receive in early March 2017. 4. Further reduce this basis number at December 31, 2016, by any OKS distributions you receive in 2017. 5. Any 2017 OKS taxable income or loss before the transaction will also be allocable to you. Taxable losses allocable to you will reduce your basis and increase your realized gain in the transaction, while any taxable income allocable to you will increase your basis and decrease your realized gain in the transaction. 6. Any ordinary gain generated from the transaction may be reduced by any passive loss carryforwards, to the extent such passive loss carryforwards are available. The tax consequences of the transaction to each OKS unitholder will be unique and depend on the OKS unitholder's particular facts and circumstances. You should consult your own tax advisor to determine the specific consequences to you of the transaction, including under the laws of any applicable state, local or foreign jurisdiction, and under any applicable U.S. federal laws other than those pertaining to income taxes. You can visit the website https://www.taxpackagesupport.com/oneok to estimate your gain or loss on this transaction via the online K-1 support. Unitholders not registered with the website will need to register to access the website. Please note the gain/loss calculator will calculate a unitholder’s estimated gain or loss based on the unitholders tax basis at December 31, 2016. OKS 2017 operating activity will not be reflected in the estimated results from the gain/loss calculator. Any ordinary gain generated from the transaction may be reduced by any passive loss carryforwards, to the extent such passive loss carryforwards are available.
ONEOK Partners, L.P. Tax Package Support
Why wasn't. It. One for one ?
Is OKS overvalued at current levels? if you guys have questions you should ask awe.some.stocks. They often respond to my emails which is helpful.
Can the tax hit (assuming the merger goes through) be offset by taking losses on other stock sales?
I was down this road before when KMP was absorbed by KMI, it was all rosey until tax time and the new shares off KMI tanked. If OKS is merged into OKE, I can't help but think the same scenario will happen and I will feel the pain again.
If you are a long term holder of OKS, you should definitely vote against this merger. That tax hit will be enormous.
https://www.taxpackagesupport.com/oneok# This link will estimate your tax liability, you do get to use the passive losses that had been previously excluded which makes a big difference. You will still have to pay the govt, just not as much
ONEOK Partners, L.P. Tax Package Support
Stuck around too long on this one. Avoiding the massive tax hit when it topped out around $57 was a big mistake
Would there be any advantage to selling prior to the buyout?
It is clear from the current neutral earnings per share value of 2.25 that OKS could yield both a pullback or an uptick. The scenarios are quite interesting at current levels. google awe-someSTOCKS - they offer pretty good trade alerrts. you dont have to trade their tickers but it definetly helps you recognize possible patterns for stocks you're trading.
My CPA informed me 100% taxable. It pushed me into 3.8% Obama Care tax; With out change in that and capital gain and state tax I'm looking at 40% tax on this forced sale. Thanks a lot OKS.
X axis : Stocks Price Correlation Coefficient Y axis : Quantity of stocks Sep-2016 1,000 Day Parameter 4,338 NYSE Stocks Price Analysis This stock mode of correlation coefficient is 0.9 In other words, the correlation coefficient of the other stocks
View ONEOK Partners, L.P. (OKS) stock price, fair value, financials statements, news, valuation models, fundamental charts, and more.
I have my doubts whether this post will stay up long, but this stock is falling and it's not done by a long shot. I'm taking my profits and storing them elsewhere.
Immovable force meets unstoppable object now that OKS has seen dividend percent settled at the neutral level of 5.93%. Possible pullback with some downside but also possible upside. if you guys have questions you should ask awesomeS-TOCKS. They often respond to my emails which is helpful.
Is this another KMP to KMI situation? Will OKS shareholders be forced to realize their gains?
GREAT NEWS! All we need is for it to split again. "A dividend increase of 21 percent to 74.5 cents per share, or $2.98 on an annualized basis, with dividend growth of 9 to 11 percent annually thereafter through 2021."
Good deal for OKE..Sucks for multi year holders of OKS..
Just called OKS office. Will be taxable, less any dep.