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Started By
Message
re: Kinder Morgan Deal
Posted on 8/13/14 at 10:14 pm to nolaks
Posted on 8/13/14 at 10:14 pm to nolaks
quote:
am sitting on my KMP. Will ride it out and tag along for the next few years. I bought at 72.
you gonna owe some taxes
I bought Kinder Morgan Management (KMR) about three months ago at 72 also.
KMR is set up to pay dividends in stock only each quarter.
I will receive roughly 2.5 shares (no cash) for each share of KMR I own and will not owe any taxes on the exchange. Thrilled.
0
Posted on 8/14/14 at 9:50 am to LSUFanHouston
LSUFan, It sounds like I need to call my CPA for some guidance on if I should hold or sell. Would it not be considered a long-term gain if held for more than a year? I have a block in my SEPP and a block in my non-deferred account.
Posted on 8/14/14 at 10:27 am to LSUFanHouston
quote:
Williams or Enterprise. Enterprise is getting pretty unwieldy as well.
Difference is that Enterprise bought out their IDRs awhile back. Kinder's main issue was the IDR drag on cost of capital. So Kinder's Cost of Equity was much greater than Enterprise.
Posted on 8/14/14 at 1:29 pm to Speck
They are a client of ours. Those guys making bank.
Posted on 8/15/14 at 10:16 am to Weaver
Up over 5 points in the last two days. Now over $98.
Posted on 8/15/14 at 11:24 am to dwr353
When you sell one of these things, if you have a gain, it is generally broken up into two parts. One part is Ordinary (taxed at marginal rates) and one part is Capital (taxed at Long-term rates if you held it for a year).
A lot of people (including many CPAs and all investment advisors) don't understand that.
Now that the merger is happening, you won't be able to avoid this. Either you trigger this treatment by selling now, or, the merger will trigger the treatmetn for you.
You need to be careful about putting these things in a SEPP or any retirement plan. If these things ever start throwing off income (some do) depending on how much you own, you could have to file a Form 990-T for your retirement plan.
A lot of people (including many CPAs and all investment advisors) don't understand that.
Now that the merger is happening, you won't be able to avoid this. Either you trigger this treatment by selling now, or, the merger will trigger the treatmetn for you.
You need to be careful about putting these things in a SEPP or any retirement plan. If these things ever start throwing off income (some do) depending on how much you own, you could have to file a Form 990-T for your retirement plan.
Posted on 8/15/14 at 11:33 am to LSUFanHouston
Yes, you are correct. I bought some on 8-8-13 and some 9-8-13. Will hold until Sept. and look at it then. Based on 2.19 per share of KMI and $10.77 cash per KMP unit, it works out to about $102 per unit as of today. Since I paid in the 70's for the units and received a year of dividends/distributions at 8%, I am happy.
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