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  • How to Buy the Right Dividend Stock - At the Right Price [View article]
    And one of these days I'll learn to do it more promptly than I presently my next life, probably.
    May 19 04:29 PM | 3 Likes Like |Link to Comment
  • Cramer's Lightning Round - An Apple Ecosystem Winner (5/18/11) [View article]
    tginomorebush, I agree with you. Why not just sit and collect the distributions, neglecting the hassle and expense of selling, on LINE. I wish all my issues were yielding 6.9%. I'd be working a lot less hard trying to keep up!
    May 19 03:54 PM | 2 Likes Like |Link to Comment
  • Think Twice Before You Sell Those MLPs [View article]
    It will depend on the income threshold for taxation of each individual state, something you would have to look up. I understand that PA is very tough about it getting their share whereas other states ignore it. I've only filed in the state in which I'm domiciled as well as the other state in which I have to file due to other income anyway. Doesn't mean it's right, though...
    May 19 03:48 PM | Likes Like |Link to Comment
  • Energy Transfer Partners: Hitting Bumps in the Road, But Not in the Ditch [View article]
    Nice to read a refreshing article, Mr. Merola, instead of the doom and gloom about MLPs. I most certainly hope you (we) are right about ETP, an issue I've held since 1994 when it was Heritage Propane, and have added to since. I simply couldn't afford to sell it due to the taxes that would be due even if I wanted to do so, which I don't. My YOC is a great deal more than the present 7+%, but even if it weren't, in today's horrid yield environment, a 7% yield is sure a lot better than a poke in the eye and I'll gladly take that!
    May 13 11:10 PM | 3 Likes Like |Link to Comment
  • Take a Gamble on Bally [View article]
    I've held BYI since it was a wee bit under $12. I've sold 2/3rds of the position at two different times during the past year simply to buy something that interested me more. I was going to sell the last third but then got the notice of the Dutch Auction and decided if the company wanted it shares back to bad that I'd just hang on a little longer. This is the third time I've held what is now Bally over the years, making a nice profit from it each time.

    Have you taken their recent notice of said Dutch Auction into account in your above message?
    May 11 07:46 PM | Likes Like |Link to Comment
  • MLPs -- Part 7: MLP Investor Taxation [View article]
    I would buy it in my taxable account, particularly if I were putting all $100K into one issue.

    But, it's doubtful I'd ever put that much into one issue. My Grandma instilled in my the thought of not putting all of my eggs in one basket! I'd break the $100,000 up into incremental accounts and go from there.
    May 7 05:22 PM | Likes Like |Link to Comment
  • San Juan Basin Royalty Trust: Long Life for Value, Short Life for Taxes [View article]
    The same thing happens with MLP's, does it not? Which is why so many of us holding MLP's plan to die with them. When that happens they go to the beneficiaries on a stepped up basis, so the "recapture" is never taxed.
    May 6 07:12 PM | 2 Likes Like |Link to Comment
  • Public Master Limited Partnerships -- Part 1 [View article]
    Yes, your last paragraph is how I understand it, too. So when selling one really has two calculations of "profit" to make.

    I don't have a link handy, but the dividends after reaching your basis are taxed as LT cap gains. If you think about it, it would take over a year to get to that positon.
    Apr 27 03:14 PM | Likes Like |Link to Comment
  • Public Master Limited Partnerships -- Part 1 [View article]
    I really believe that what you pay after your capital account reaches zero, is based on capital gains rates, not at ordinary income rates.

    Of course, you could always delay that day by adding a few more shares when it gets close to your basis. If it has done well by you for all the years it takes to get to that point, then it might be well worth while to do that.

    (You could use as a simile the recapture of depreciation when one sells a piece of investment property, such as a rental house. In the case of MLP's you recapture the amount of deferred income. Again, the easiest way to handle that is never to sell them. As tax law has it now, they will be stepped up in basis upon your death so the beneficiary won't have any taxes at all to pay on them.)
    Apr 26 09:20 PM | 1 Like Like |Link to Comment
  • 4 Mid-Cap Oil & Gas Equities That Currently Yield Over 7% [View article]
    From what I can glean from a few other boards, there are some brokerages that are not up-to-date on the CA tax law re tax-deferred accounts, particularly for those entities that at one time were Royalty Trusts and are now C-corps. Therefore, the shareholders are still having the 15% deducted from their dividends. They are working to "educate" the custodians, but that takes time.
    Apr 26 09:12 PM | Likes Like |Link to Comment
  • 6 Oil and Gas Equities That Currently Yield Over 7% [View article]
    You don't necessarily need "institutional sized accounts" to have UBTI shown on your K-1. I most certainly don't have such sized accounts and have one MLP (ETP) on which I would have had to pay taxes on the UBTI (had it been in an IRA) for 5 years running.

    It also depends, you see, on the length of time you've held that MLP. I've held ETP since 2/98 when it was Heritage Propane.
    Apr 22 04:32 PM | 1 Like Like |Link to Comment
  • Is Methanex Next for Buffett? [View article]
    I would really like that! I've held Methanex since 8/94. There were many years it was under my cost during that time, although I am up now. Finally, I'm vindicated!
    Apr 20 04:46 PM | Likes Like |Link to Comment
  • 7 Preferred Stocks for the Perfect High-Yield Portfolio [View article]
    Is there a website to "learn" the pros and cons of investing in preferreds? I've never owned one and they sound like they would be something I'd be pleased with. Thank you in advance for your responses.
    Apr 12 12:02 PM | 3 Likes Like |Link to Comment
  • Iceland's PM warns of "chaos" (and not getting an invite to Davos or Jackson Hole) after voters again reject a plan to pay back countries whose citizens lost money in the banking collapse. The dispute will end up in court, where the U.K. and Netherlands can explain to a judge why a country's citizens should be liable for the actions of a private financial institution.  [View news story]
    Thank you for the explanation, sportgamma. The messages above seem to have gone off the actual topic of Iceland somewhat...
    Apr 10 01:29 PM | 5 Likes Like |Link to Comment
  • HSBC Warns That There Is Only 50 Years of Oil Left - Time to Stock Up on Oil Investments [View article]
    Craig, You're right. Fat fingers typo on my part...
    Apr 10 01:21 PM | Likes Like |Link to Comment