Tuesday, October 28, 2008
Dow up nearly 700. MLP index up over 5 and back near the highs of the day. There are a lot of mlps down 1 point or more today which is unusual given the gain but there must be some sort of final unwind going on somewhere. Look to see if those mlps pull even toward the close. But in the past when this has happened we tend to play catch up tomorrow.
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joseph cioffi's Source Page - Associated Content
7 comments:
Jim Cramer
800
10/28/2008 3:51 PM EDT
They seem to want to take it to plus 800. This is the kind of day that makes you recognize that the whole enterprise seems phony...
joe, it seems more often there are pop-ups ad that make odd sounds an other distracting ads coming up on your site.
thought i would let you know
lou
I would like to know if people agree with this.
As I understand the tax impact of MLP investments, most of the distributions are taxed as ordinary income when I sell the shares. If this is the case and if Obama wins and I anticipate a significant increase in the marginal tax rate next year as a result, does that mean that it makes sense to "harvest" the distributions this year and pay the taxes at the current rates if I otherwise anticipated selling some of these next year?
Anyway, I would love to hear how other people think about this.
Re: pop-ups, noises, and other distractions.
Use Firefox and install the popular `No Script' add-on. With a simple right-click, you inform Firefox about what domains you trust and will accept scripts from. This makes for a pleasant, fast, efficient way to navigate the WWW. These permissions are revocable at any time.
I have zero problems with this site.
"I would like to know if people agree with this.
As I understand the tax impact of MLP investments, most of the distributions are taxed as ordinary income when I sell the shares. If this is the case and if Obama wins and I anticipate a significant increase in the marginal tax rate next year as a result, does that mean that it makes sense to "harvest" the distributions this year and pay the taxes at the current rates if I otherwise anticipated selling some of these next year?
Anyway, I would love to hear how other people think about this."
The distributions are mostly return of capital and you are not taxed on that. They are subtracted from your basis on a cumulative basis. There is a little capital gain, a little interest income, and some other stuff. When you sell the stock, you will pay a higher capital gain because of the return of capital.
I thought that the portion of the distributions that are deferred (treated as a return of capital) are still taxed as ordinary income. See this site:
http://www.mlpinvestor.com/deferral-of-taxes/
If that is the case, I would still care about an increase in the marginal tax rate. Is that not right?
thanks mike, Lou
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