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MLP tax question/strategy - ET
Posted on 8/8/24 at 4:12 pm
Posted on 8/8/24 at 4:12 pm
Should I keep buying ET in order to not exceed my cost basis in distributions and kick the tax down the road or just stand as is?
I'm up 124% on the shares outright and about 2 years from distributions exceeding cost basis.
I'm up 124% on the shares outright and about 2 years from distributions exceeding cost basis.
6
Posted on 8/8/24 at 10:18 pm to Wraytex
That cost basis is being adjusted by allocated income / losses. Have you been doing that?
Also remember you dont get to take any of the suspended losses until you sell out of ET. If you start kicking the can, you are making your future problems worse unless you commit to kicking it until you die.,
Also remember you dont get to take any of the suspended losses until you sell out of ET. If you start kicking the can, you are making your future problems worse unless you commit to kicking it until you die.,
Posted on 8/9/24 at 12:47 am to LSUFanHouston
I've just been taking the distributions as cash. Early on I rolled back in. But last shares bought were in January. I guess I'm not following the adjusted losses?
Posted on 8/9/24 at 1:04 am to Wraytex
quote:
Should I keep buying ET in order to not exceed my cost basis in distributions and kick the tax down the road or just stand as is? I'm up 124% on the shares outright and about 2 years from distributions exceeding cost basis.
You shouldn’t really do anything investment wise strictly for tax purposes - at least as far as equities go.
Posted on 8/9/24 at 7:04 am to Wraytex
Are you preparing your own tax returns? Are you reporting the info provided on the Schedule K-1?
Posted on 8/9/24 at 10:02 am to Wraytex
I recently sold out of my EPD and PAA and bought AMZA just so I don't have to fool with K-1s anymore. I love the yield on the MLPs but its not a tax advantaged account and creates a lot of headaches.
Posted on 8/9/24 at 12:06 pm to Triple Bogey
We use a CPA in Abilene and do report the K1's
Do I understand correctly that once the cost basis is met, further distributions become ordinary income and not taxed as long term gains.
I appreciate all the replies and insight.
Do I understand correctly that once the cost basis is met, further distributions become ordinary income and not taxed as long term gains.
I appreciate all the replies and insight.
Posted on 8/9/24 at 12:50 pm to Triple Bogey
quote:Check out AMLP too.
I recently sold out of my EPD and PAA and bought AMZA just so I don't have to fool with K-1s anymore.
Posted on 8/9/24 at 3:33 pm to Wraytex
Yea, I bought ET a few years ago, had no idea it was a mlp, went through a round of taxes and realized why everyone doesn't just buy this stock with ridiculous yield, when the cost basis was blank on my tax form from etrade.
It's just not worth the extra consideration and time to me with my small potatos.
It's just not worth the extra consideration and time to me with my small potatos.
Posted on 8/11/24 at 8:52 pm to Wraytex
quote:
and about 2 years from distributions exceeding cost basis.
Are you sure about this? I had 6 figures in MMP as a long term holder and they were acquired by OKE last fall and I thought I would have a terrible tax scenario and it was a nothing burger, they sent me > $35k cash and I received "X" shares of OKE. I think you need to speak with someone who has a lot of experience dealing with these types of investments. Separately I have 6 figures in EPD remaining and when a large market dip occurs I add some units just to keep my tax basis up. Depends on what your specific situation is and if I was still working it could be a much different scenario.
Posted on 8/11/24 at 9:51 pm to Wraytex
I think of ET as a long term hold. It’s a great cash flow stock and they aren’t ever going to build new pipelines. Plus your heirs get the step up at your death. If you are two years out from exceeding cost basis just set a limit order to buy some more at a lower price than it is currently. You’ll get some occasional price fluctuations that will give some buying opportunities and push out your cost basis date while adding more of a great company. I just have a $20 weekly buy set. I’m also in PAA and EPD as well as a real estate syndication so I’m always waiting until March for K1s anyway.
This post was edited on 8/11/24 at 9:58 pm
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