Comments on: Exploration & Production MLPs

By: A stock offering safe dividends AND speculative upside

A stock offering safe dividends AND speculative upside — Fri, 06 Mar 2009 16:18:11 +0000

[...] Energy (LINE) is an exploration and production MLP. An MLP is a publicly traded vehicle that is structured as a limited partnerhsip. As a result, [...]

By: socphd71

socphd71 — Mon, 12 Jan 2009 21:06:05 +0000

My problem with MLPs is: They have until April 15th when unit holders must receive the schedule K-1. On this form are the previous year’s income, etc. This makes filing one’s tax returns very difficult, if you file yourself, as my spouse and I do. I won’t invest in any MLP unless someone can show me where I’ve gone wrong.

By: TIM SULLIVAN

TIM SULLIVAN — Sat, 10 Jan 2009 13:58:29 +0000

My tax accountant has refused to respond to my inquires over the issue of the income erroneously reported on my 2007 return from a K-1 form. The $38 becomes a moot point as to it’s size. They just can’t be bothered. Unfortunately as a result this also ended up being reported on my state return. Unfortunately even a hot shot tax accountant does not do every tax return themselves. They hire the temps who when faced with a confusing issue that should be straight forward resort to short cuts or just make incorrect entries to save time and labor costs. For their convenience the client forks over +$750 for expert tax prep. K-1 forms are a minor problem when filing but if the investment is in a tax sheltered account they become more difficult. The IRS generally now allows up to $1000 in UBTI in total for all your accounts. As long as you do not exceed that you have no tax issue except with an ignorant tax accountant that reports this or any other K-1 distributions as income even though the K-1 plainly indicates an IRA. To avoid these headaches without losing an opportunity to participate in this asset class there are several vehicles that avoid generating K-1 forms altogether. The interest not dividend paying BSR, the KYN, and the MTP are a few. There are many closed end funds that also have some % of their investments in MLPs as well.

By: Where you can find black gold

Where you can find black gold — Fri, 09 Jan 2009 14:22:19 +0000

[...] Oil & Gas MLPs While the oil majors – RD Shell (RDS.A), Exxon Mobil (XOM), Marathon Oil (MRO) – have been supporting their stocks through massive buybacks and increasing dividends, such distributions could be at risk should oil prices stay far below $60/barrel for more than the next year. Smaller Oil & Gas MLPs have similarly large distributions (read: dividends) and many have entered serious hedging contracts that could keep dividends safe for up to the next two years. For more on this interesting asset class and a few interesting names check out my post on Exploration and Production MLPs. [...]

By: Grease up your portfolio

Grease up your portfolio — Thu, 08 Jan 2009 04:30:43 +0000