Selling the last of my MLPs

[kathiel]

I've decided to simplify my finances by selling the last of my MLPs, Energy Transfer.  This will make my taxes very easy.  

[steelpony10]

kathiel ,

    I remember when those were part of your “fun money”. So time does fly.

[mnfish]

If you don't sell them they have a knack for doing it themselves.

These are the ones that got me.
KMP to KMI
OKS to OKE
MMP to OKE

I still have ET and EPD.

[retiredat48]

I just accepted a tender offer for a small residual holding, NTG, from the MLP massacre a few years ago. Mkt price about $33/share; offer price at 98% of NAV price, which is now about $41/share. Puts me out of MLPs for now!

R48

[FD1000]

About 10 years ago we had lot of discussions and debate about MLP. The high income guys argued, as they usually do, that MLPs are a good choice because of the higher income.
10 years later...and the SPY crushed MLP by about 180%. The MLP index made about 8% total in 10 years.

schrts.co/sXRtIIEs

[bruce]

Fish,

I have never owned an MLP, but I found the old M* I&D discussions about them interesting and informative. When I look up the performance of individual performance, using TR/growth of a $10,000 investment on the dividend channel, it shows ET returning $4,265 and EPD returning $16,442 over the last decade. Meanwhile, the same investment in SPY returned $28,462. Was that your experience, or is the dividend channel missing some splits, buybacks, bonuses, etc?

[mnfish]

Oct 27, 2023 19:22:54 GMT bruce said:

Fish,

I have never owned an MLP, but I found the old M* I&D discussions about them interesting and informative. When I look up the performance of individual performance, using TR/growth of a $10,000 investment on the dividend channel, it shows ET returning $4,265 and EPD returning $16,442 over the last decade. Meanwhile, the same investment in SPY returned $28,462. Was that your experience, or is the dividend channel missing some splits, buybacks, bonuses, etc?

Unless you have a tax problem and want tax deferred income I wouldn't buy one. 
EPD has been owned by me since 2014-15 and I had owned other MLPs when I was still employed and liked the tax status. It is currently 1.5% of my total portfolio as is ET, which is one of big losers I have and I hang on to it just out of spite and a little income.
LINE (Linn Energy) was another one that went tits up while I owned it. Such is investing.

 

[Schroeder]

I am planning to sell my last two MLPs. Not only are they confusing now but upon the owners death they appear to get worse for the people who inherit them. In doing research, some of the tax pros don't even agree on how the step up and deferred losses will be treated by the IRS. One of them is ET. Does anyone know if we will get three separate sales schedules? (ET, USAC & SUN)

[kathiel]

Schroeder,

I don't know if we'll get three separate sales schedules (the MLP I sold is ET), but I'll be glad to be done with the income tax complications!

[richardsok]

ET is still 4% of PV in my income bucket. Up nicely, and paying 10% YOC. I see no reason to sell -- K-1s are no prob, so long as I own only one or two, never trade them any more and my accountant is an old fishing pal.

[bugman]

If you've owned one for a long time, the stock sale tax impacts can be even more of a headache than the annual tax filings. All that passive income comes home to roost. I sold a few shares a couple years ago as a test, and I won't ever sell them.

[mnfish]

Just entered the sale of MMP into Turbo Tax and got clipped for about an additional $2500 in taxes due to the ordinary income. Not to mention a $2500 loss on the sale.
So, after owning for 8 years and collecting $9,121 in "tax deferred" income I cleared about $4,000. I'm going to sell EPD this year before they convert to a Corp or get bought. There are much better ways to get a 6% dividend and not have to worry about paying ordinary income tax rates someday.

[bb2]

ENB seems to be getting a lot of love. Not an MLP. 7.5%  I own it but am considering adding.  (In an IRA to avoid withholding)

I think I saw this am that someone upped KMI to a buy.  Again, not an MLP.

[yakers]

Sold my last some years back, did ok financially but too much trouble with the K1s, IMHO not worth it unless one goes deep & wide enough to make it worth the effort. I only had one and it took too much attention.

[mnfish]

I wonder what Cliff (MStar poster) has had to pay the IRS in recent years due to the MLP conversions/sales? He used to own a slug of OKS and MMP if my memory is correct.

[anitya]

Mar 7, 2024 13:29:20 GMT mnfish said:

Just entered the sale of MMP into Turbo Tax and got clipped for about an additional $2500 in taxes due to the ordinary income. Not to mention a $2500 loss on the sale.
So, after owning for 8 years and collecting $9,121 in "tax deferred" income I cleared about $4,000. I'm going to sell EPD this year before they convert to a Corp or get bought. There are much better ways to get a 6% dividend and not have to worry about paying ordinary income tax rates someday.

I am still waiting for my K-1 on MMP.  When and how did you get yours?  I contributed to charity the day before it got acquired.  I will have to see if that made my taxes simpler or more complicated.

[yogibearbull]

anitya, check this site for K-1s. I am K-1 free now, but when I had that headache, I found that PWC posted K-1s much earlier than I received them in mail.
www.taxpackagesupport.com/

[mnfish]

Mar 8, 2024 14:26:54 GMT anitya said:

Mar 7, 2024 13:29:20 GMT mnfish said:

Just entered the sale of MMP into Turbo Tax and got clipped for about an additional $2500 in taxes due to the ordinary income. Not to mention a $2500 loss on the sale.
So, after owning for 8 years and collecting $9,121 in "tax deferred" income I cleared about $4,000. I'm going to sell EPD this year before they convert to a Corp or get bought. There are much better ways to get a 6% dividend and not have to worry about paying ordinary income tax rates someday.

I am still waiting for my K-1 on MMP.  Whenwebsite and how did you get yours?  I contributed to charity the day before it got acquired.  I will have to see if that made my taxes simpler or rmore complicated.

I received an email from tax support saying the k1 was available. If you’re not registered on that you will have to wait for it to be mailed.

Edit to add - www.taxpackagesupport.com

[anitya]

Mar 8, 2024 14:37:54 GMT yogibearbull said:

anitya , check this site for K-1s. I am K-1 free now, but when I had that headache, I found that PWC posted K-1s much earlier than I received them in mail.
www.taxpackagesupport.com/

My K-1 is there but it is wrong.  Thanks for prompting me to check so now I can get it corrected before they file with (send a copy to) the IRS.  Will call them on Monday.

[win1177]

Sold our last one several years ago. Our taxes were already WAY too complicated with my medical practice, multiple K-1’s, 401K, ROTH 401K’s, my wife’s oil and gas income from a family LP, etc. Over last couple of years have been “trying” to have less complicated taxes, all to no avail. Have to file for extension every year, pay our accountant thousands, just trying to simplify things a little.

Do NOT need the income from MLP’s, we already have enough from dividends, so “simplicity” is the keyword now. We will always have the family LP, so they will stay complicated but glad to limit the additional hassles.

Win

[kathiel]

I just finished by 2023 taxes - the last K-1 I'll have to deal with!