[ar475]

Originally Posted by manaboutown

Over the last couple years I have been nibbling at them and the three I had bought have done so well I bought into another today. Their cash distributions are why I buy them as I am seeking passive income.

The hassle happens at tax return time. Oh well...

one other wrinkle worth mentioning: do not plan on selling them. the money you receive (distributions) lowers your cost basis by that amount, so the longer you hold them the lower your cost basis which means your capital gain will be greater them your original cost and the selling price, however my accountant has told me he has never seen this happen. However, even if that is the case I plan on passing them on to my heirs who will get a stepped up basis.

[collie1228]

I truly believe that if you are picking investments in retirement that require an accountant or attorney to pass tax muster, you really aren’t investing in retirement at all. You are working the market. There are so many strategies that don’t need professional tax advice - and those are in my wheelhouse. The KISS principle for me.

[manaboutown]

Originally Posted by ar475

they're a great deal, closest thing you can get to free money. just be sure to hold them in your taxable account, not your IRA. K-1's are no big deal, my accountant handles them with ease and charges very little. mine always get to me in time to file without an extension. epd and et are probably the best two IMO.

Just bought EPD and ET has been amazing. PAA and MPLX have done OK, too. All are in taxable accounts.

My accountant is a K-1 king and has himself for many years generated multiple K-1s during the preparation of tax returns from my real estate LLCs as well as dealing with K-1s from other sources when preparing my personal tax returns. No worries. He has great K-1 processing software.

[Skip]

Originally Posted by Babubhat

Your accountant will hate you and charge you accordingly. Be prepared for amended K-1 and amended returns.

Yes and even "Investment Tax Credits" amended K-1s multiple times make you refile your returns over and over. Some I've heard, even a year of two later. The hassle was not worth it and eventually my ITC went bankrupt. I just lost the ability to save on taxes, didn't lose any principle, TG!

Too much hassle.

Skip

[manaboutown]

Well, I just picked up a fifth (MLP, not an adult beverage) to hold five of the top six in the ETF AMLP. The five comprise a majority of its holdings. Since I know the drill on obtaining K-1s for publicly traded MLPs from a website dedicated thereto I am good to go. Although AMLP looks like a good ETF I did not want to pay its 0.85% management fee.