31October

Commodities for Income Investors

I also had some MLPs, and the tax nightmare went on for a year after I got out. I made a great return buying and selling with the spot demand plus getting dividends, but that made following partnership basis even worse! Unless your sibling is willing to do your taxes for free, you will spend a *shocking* amount of effort on MLP taxes. And the IRS will dig them up every year, because none of the agents can figure them out either! The money was great, but they are a terrible hassle.


On May 30 12:28 PM April May wrote:

> An unbelievable nightmare! I own several Canadian partnerships and
> a few in America. You will receive a K-1 instead of a 1099 from each
> of them at tax time, and quite late at that (end of March, early
> April). You'll need an accountant to report those figures properly
> on your income tax return (seekingalpha.com/symbo...). I
> have prepared my own tax returns for over 40 years, and yet I was
> stumped when trying to decifer those energy K-1's. Even the IRS booklets
> didn't help me.
>
> Is it worth the tax headaches in April? I'm not sure yet. If you
> usually use a CPA at tax time, then it shouldn't matter to you.
>
>
> Why did I take a chance? High dividends lured me. But LP's dividends
> aren't really dividends in the eyes of the IRS--they are a distribution
> of the partnership's earnings and must be reported on a separate
> IRS form, and not with other "real" dividends. It is quite complicated.
> You also report other activities of the partnership such as depreciation.
>

Stocks to Help You Avoid the 7 Deadly Sins of Income Investors

Try FCX.PR.M:
1. China is bulking up on copper.
2. FCX profits from limited & depleting resources.
3. Copper & foreign currency reserves hedge against latent inflation
4. Pays a 10.2% dividend, which just gets better if copper demand drops.