Message Font: Serif | Sans-Serif
 
No. of Recommendations: 0
Tim,

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?

That is true. I can only speak to KMR which I use to have within my IRA. No K-1's to deal with or any UBTI conflicts.

You may also want to look at LNCO (similar situation) but do your due diligence.

Rich
Arizona
Print the post  

Announcements

Disclaimer:
In accordance with IRS Circular 230, you cannot use the contents of any post on The Motley Fool's message boards to avoid tax-related penalties under the Internal Revenue Code or applicable state or local tax law provisions.
What was Your Dumbest Investment?
Share it with us -- and learn from others' stories of flubs.
When Life Gives You Lemons
We all have had hardships and made poor decisions. The important thing is how we respond and grow. Read the story of a Fool who started from nothing, and looks to gain everything.
Contact Us
Contact Customer Service and other Fool departments here.
Work for Fools?
Winner of the Washingtonian great places to work, and Glassdoor #1 Company to Work For 2015! Have access to all of TMF's online and email products for FREE, and be paid for your contributions to TMF! Click the link and start your Fool career.