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Subject:  Re: Qualified Dividends Question Date:  11/2/2013  2:45 PM
Author:  BruceCM Number:  119442 of 127613

KYN is a closed end fund that is organized as a C-corporation. From the annual report:

Kayne Anderson MLP Investment Company (the “Company”) was organized as a Maryland corporation on June 4, 2004, and is a non-diversified closed-end management investment company registered under the Investment Company Act of 1940, as amended (the “1940 Act”). The Company’s investment objective is to obtain a high after-tax total return by investing at least 85% of its net assets plus any borrowings (“total assets”) in energy-related master limited partnerships and their affiliates (collectively, “MLPs”), and in other companies that, as their principal business, operate assets used in the gathering, transporting, processing, storing, refining, distributing, mining or marketing of natural gas, natural gas liquids (including propane), crude oil, refined petroleum products or coal (collectively with MLPs, “Midstream Energy Companies”). The Company commenced operations on September 28, 2004. The Company’s shares of common stock are listed on the New York Stock Exchange, Inc. (“NYSE”) under the symbol “KYN.”

Teekay Offshore Partners is treated, it seems, as a corporation to US shareholders. From the annual report:

We have elected to be taxed as a corporation for U.S. federal income tax purposes. Subject to the discussion of passive foreign investment companies (or PFICs) below, any distributions made by us with respect to our common units to a U.S. Holder generally will constitute dividends, which may be taxable as ordinary income or “qualified dividend income”

But in looking through the TOO-A prospectus, it seems that these are not preferred stock, but preferred 'units', which means they are a class of limited partnership units, with some form of priority access to distributable cash flow, most of which is from offshore operations.

A bit exotic for my staid income holdings.

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