The Motley Fool Discussion Boards

Previous Page

Financial Planning / Tax Strategies


Subject:  MLP tax question: KMI vs. KMR vs. KMP in IRA Date:  2/22/2013  3:29 PM
Author:  BoomerBull Number:  117843 of 133502

In a recent Barron's article a financial manager said he buys KMI for "growth with income" and KMR for "income with growth" for his clients' portfolios. Elsewhere (, I have read that KMR, which pays distributions as extra shares of stock instead of cash, eliminates the tax complications of ordinary MLPs like KMP in tax-deferred accounts. The implication is that the IRS considers the extra shares like stock splits and not UBTI. Is that true? Enbridge Energy's EEQ versus EEP is the same construct. I'm looking more toward the "income with growth" direction with Kinder Morgan but don't want tax complications of ordinary MLPs, especially in an IRA, and that's where I have the cash to invest. By the way, I have both ROTH and traditional IRAs. Would there be a preference between those two?

--Tim (BoomerBull)
Copyright 1996-2022 trademark and the "Fool" logo is a trademark of The Motley Fool, Inc. Contact Us