Tag Archives: taxes

MLP taxation: the upside of ending the tax break

In my last post I described what I consider the worst case scenario for MLPs in the event that their tax favored status ends overnight. Today I want to look at a few of the upsides of such an event. Yes, I do think there are upsides to ending the MLP tax favored status. I can think of four upsides right away; incremental share demand, potential higher valuations, expanded business opportunities, and pricing power. Lets look at each of these possibilities. While the MLP sector has enjoyed strong and increasing investor demand over the years the tax complications and tax … Continue reading

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MLP taxation – the worst case scenario

What is the worst that could happen? That’s a question I always ask myself when making an investment. I look at the major risks posed to an investment and do a worst case scenario analysis with respect to that risk factor. When it comes to MLPs probably the major risk associated with an investment in the sector is the potential ending of their preferred tax status by the government. Over the years rumors of the ending of the MLP tax preferred status has caused the sector to sell off several times and I’m sure has kept many investors away from … Continue reading

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Opportunity brewing in MLP land

There looks to be a correction developing in the MLP sector that may bring up a significant opportunity that income investors should begin to have a plan for. Lets look at the drop in prices recently, potential reasons for the drop, and what it means for the sector and more importantly investors. As of 1PM or so Eastern time most of the MLP names are down between 5-13% off their highs. Here are recent prices for the MLPs that I follow and how much they are off their 52 week highs. Definitely looks like a correction is brewing if not … Continue reading

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Tax loss harvesting as a retirement tool

That dreaded time of year is fast approaching. Yep, tax time. As we barrel to that dreaded time I’d thought I’d touch on an often overlooked tool for investors, tax loss harvesting. Used appropriately, it can reduce the burden of capital gain taxes in retirement and also be a great benefit if you end up passing on wealth to family upon your death. Tax loss harvesting refers to using the losses that will occur in your portfolio over the years to reduce your present and/or your future tax bill and can even eliminate them entirely. US tax law allows you … Continue reading

Posted in Portfolio, Retirement | Tagged , , | 8 Comments