All About MLPs (Master Limited Partnerships), K-1s and HUGE Dividend Distributions

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  • Опубликовано: 27 дек 2024

Комментарии • 124

  • @kashongreen2317
    @kashongreen2317 5 лет назад +30

    Hey Ian I'd Really Like To Thank You Man. I Live In A Low Income Community and my family seems to be in a cycle of poverty. I'm hoping to break that pattern. Honestly I find your page to be the most honest, genuine and accurate on RUclips. Nice to know there are still cool people out there just willing to help. Can't wait till you release your book, and I hope you feel better! Peace

    • @ppcian
      @ppcian  5 лет назад +5

      Your kind words, Kashon, really mean the world to me! I am so excited for you and am excited for your HUGE future - breaking that pattern! Thanks for sharing your story. God Bless You, my friend. Please do not hesitate to reach out if there is ever anything I can do here (video topics) that would be beneficial. Wishing you all the greatest!

    • @Cashcarlos911
      @Cashcarlos911 5 лет назад

      I would like to open a special account with just only MLP stocks which did you recommend beside 1. Cedar Fair ticker (fun) I have already 2. ET 3.DCP. 4.KMI 5.SBR 6.Sunoco ticker (sun).7 crestwood equity ticker( Ceqd) which other you recommend. Looking forward to hear from you soon. Carlos Rosas

    • @jakeh.3830
      @jakeh.3830 5 лет назад

      Hey Ian thanks for the video? What's your opinion on SIX?

  • @MoneyandLifeTV
    @MoneyandLifeTV 5 лет назад +12

    Ian I always consider you to be one of the best "teachers" on RUclips when it comes to investing. Thanks for the info. Keep up the good work, and I hope you feel better soon.

    • @ppcian
      @ppcian  5 лет назад

      Means a lot, my friend! Wishing you all the greatest!

  • @pmb6667
    @pmb6667 5 лет назад

    I'm sorry you're not feeling well Ian. I hope you get better soon!
    I also wanted to THANK YOU so much, for all of your great dividend investing videos! I've been 'catching up' on watching them, and they're brilliant!
    I'm a Canadian investor (started with diversified Index funds) but who also recently started with Canadian Dividend investing.
    I'm now setting up the same thing with US-only Dividend stocks for a separate Registered Retirement account (to avoid US witholding taxes), so I appreciate your analyses on the US companies you have. I also like you have a similar analytical mind like I do. I love digging into details. :-)
    Your channel is the only one where I've clicked on that 'Notifications' bell to watch your future videos.
    Thanks again for your great work and the time and energy you put into it for this great community. You've now surpassed 24K subscriptions -- very well deserved. I hope you get many more.
    All the very best to you and your family.
    Greetings from Canada! :-)

  • @billb372
    @billb372 5 лет назад +5

    Ian I don't think MLP distributions are taxed at ordinary income after cost basis has zeroed out, but rather at LT cap gains rate.

  • @joeri2499
    @joeri2499 5 лет назад +7

    I'm getting quite well informed about the American tax system, and I don't even live there 😅
    Anyone has an idea how a US mlp works for Dutch tax?

    • @tomahawk581
      @tomahawk581 5 лет назад +3

      I bet it is not worth it. Last time I checked it for Canadians and Germans tax for the dividend was between 40% and 60%

  • @czrmartins
    @czrmartins 5 лет назад

    And how about mpl ETFs? The yield after taxes, where can I find it?

  • @markdecker9605
    @markdecker9605 3 года назад

    What difference does it make if you reinvested the distribution or took it in payment?

  • @mohamedgoldstein5565
    @mohamedgoldstein5565 3 года назад

    ppcian, I am lost with my K-1s. I bought and sold a bunch of MLPs (never again) and I think I have to find a professional.
    But Can you clarify?
    1) Is it relatively easy to do K-1s with tax software (I use H&R Premium). Managed to download the txf but then what?
    2) If I bought and sold MLPs but did not own it during dividend distribution do I still have to file
    3) Do I have to actively search for the K-1s of all the stocks traded? Or is it the company responsibility to mail me the forms
    4) Do I have to file taxes in every state mentioned in the K-1 forms?
    If you have a link to a useful video I'd appreciate it.
    Thanks a bunch

  • @oleg45678
    @oleg45678 4 года назад +1

    Hi Ian.
    What is the taxes on MLPs for non-US/foreign investors? How does it work with K-1 tax declaration?
    Thanks!

  • @jescagvil
    @jescagvil 5 лет назад +1

    Can you do a video on which broker you use as well as your strategy to limit fees when buying and selling.

  • @underconstruction778
    @underconstruction778 3 года назад

    If you buy MLP and hold, do you still get taxed?

  • @AlexandrePopescu
    @AlexandrePopescu 5 лет назад

    Hi Ian, thank you for this video. You make me discovered this stock and after studying it I was very interested, unfortunately it's 40% taxation on dividend for MLPs from France :(. Keep going.

  • @stangtrax
    @stangtrax 5 лет назад

    What stock screener do you use?

  • @roy-geo2320
    @roy-geo2320 3 года назад

    Hi ppcian, I just bought four of these units from Mlp company unaware of the implications of holding mlp’s, I want to get rid of them, what do you recommend me to do? I haven’t received return of capital yet just the share price has risen 50 cents approximately, what can I do?

  • @emsea1658
    @emsea1658 5 лет назад +4

    First? Thanks for another upload Ian. Giving it a like, eager to watch soon. Recently added an MLP to my basket

    • @ppcian
      @ppcian  5 лет назад

      A close second! Wishing you all the greatest!

  • @member2074
    @member2074 5 лет назад

    Hi: any information on how to do taxes for states once federal level taxes are done. especially for New york state. Thanks

  • @PassiveIncomeInvestor
    @PassiveIncomeInvestor 5 лет назад +7

    I was literally just thinking if Ian uploaded a video yet!!!!!!!!!!!!!!!!!!!!!!!!!!! Keep it up feel better!

    • @Sly1234e
      @Sly1234e 5 лет назад +1

      Ian is the awesome!!

    • @ppcian
      @ppcian  5 лет назад +1

      Really appreciate the kind words! Wishing you all the greatest!

    • @DobyDuke
      @DobyDuke 4 года назад +1

      @@ppcian fun doesnt pay a dividend anymore???

  • @jeffreykristensen8825
    @jeffreykristensen8825 5 лет назад +1

    When you talk about MLPs becoming less "fruitful" because of the cost basis going down after about 15 yrs and now it's taxed as ordinary income, would you then recomend selling it and waiting a year (lol) before reinvesting to get the tax exemptions again? I'm 17 and just started investing (I hold 2 BDCs- PSEC and AGNC, 1 reit- WSR -will sell - it's financials aren't looking too good anymore, 1 mreits -NLY, and 1 pharmaceutical company ABBV). My goal is to get to a point where I can just live off of monthly/quarterly dividends and retire. I've been holding off on MLPs, because everyone sais they are "hell" and I never understood them.

    • @ppcian
      @ppcian  5 лет назад

      Now that’s an interesting question! I personally am buy and hold forever, so I can’t bring myself to sell. And, I would not want the cap gains issue. If cost basis is zero, cap gains are on 100% of sales proceeds. So, for me, I would just keep holding. And, most likely adding to the investment. Wishing you all the greatest!

    • @jeffreykristensen8825
      @jeffreykristensen8825 5 лет назад

      @@ppcian Okay! I find it good to be able to talk to others about investing; especially since none of my friends invest and no one really knows much about it (friend wise). As for holding stocks till I go to the grave, I feel as though I'm going to end up doing that with ABBV- I think they've got alot going for them in the future. One of my first stocks I bought into was Conagra (CAG) and I bought it at 22.50 and sold it at 27.50 ish. Lol I only held it for 2 months... I guess I'm just "obsessed" about learning all I can about investing. That's why I love your channel. Anyways, keep up the great vids! You've got people of all ages learning important info!

    • @Sylvan_dB
      @Sylvan_dB 5 лет назад

      @@ppcian cap gains are (currently) taxed less than regular income. Not that that makes the decision, but it is a factor I'm considering with one of my MLPs that would have hit $0 basis a few years ago, but I turned on reinvestment so it is keeping even and usually slightly gaining basis.

  • @johnryan6658
    @johnryan6658 5 лет назад +1

    What about an MLP ETF like AMLP? Wouldn't that be a way of getting those nice payouts without the hassle of K1 forms?

  • @gary62or45
    @gary62or45 5 лет назад

    Ian, I'm long in FUN, and the one thing that confused me for some time was the income liability it showed for the different states Cedar Fair operates in, and my part of that liability. It took considerable time to research each of the states, to determine what I was actually required to do. For small investors this may not actually be a good investment.

    • @ppcian
      @ppcian  5 лет назад

      Fabulous insights! Because they operate in multiple states, if one’s position is large enough (and therefore distributions are large enough), it could cause one to file returns in those states. As always, a good idea to run by a licensed tax professional. (Disclosure: I am long FUN)

  • @bolylo12
    @bolylo12 4 года назад

    You explained what happen if the MLP lose money or break even BUT what happen if the MLP make net income how that would affect my taxes I would have to pay for that benefits ? How does it works ?

  • @dedricbutler8470
    @dedricbutler8470 5 лет назад

    What about the taxes on real estate REIT,s

  • @horizontaldad
    @horizontaldad 5 лет назад

    A great explanation my friend and I now see why Cedar Fair works better for you .... and confirmation that SIX works better for me in my IRA

  • @billcarson9228
    @billcarson9228 5 лет назад +1

    Hey Ian... yep 👍 love MLPs... just hand off k-1s to tax CPA 👨‍💼.. no worries

    • @ppcian
      @ppcian  5 лет назад

      I really live the MLP I own too! Wishing you all the greatest!

  • @markgierhart1864
    @markgierhart1864 5 лет назад +1

    Great explanation of MLP's in a way that I could easily understand. Well done video Ian, and prayers for you to get well my friend!

    • @ppcian
      @ppcian  5 лет назад +1

      Many thanks for the kind words and prayers, my friend! Means a lot!

  • @CarlosRodriguez-eg1ic
    @CarlosRodriguez-eg1ic 5 лет назад

    OP i would like to know what MLPs you recommend to jump in. I have watched and read about ET ETP AMLP and other MLP ETFs. Mostly in the pipelines. Thanks for your time.

  • @Richard.Cabeza
    @Richard.Cabeza 3 года назад

    Do you keep track of the cost basis on special form? What is that form or how is it structured?
    On the K1 there is a lot of information. Does the company essentially keep track of the cost basis for you on the K1?
    Hope I'm asking the question correctly so that you get the gist of my question. If anyone has some insight into this I would be greatly appreciative of some of that insight, or guidance to the right place. Thanks all.

  • @ChantzFabz
    @ChantzFabz 5 лет назад +2

    What if I hold FUN in a Roth IRA? Do I still have to worry about that?

    • @cah8291
      @cah8291 5 лет назад +1

      Look into UBTI

    • @ijohnmcdonald
      @ijohnmcdonald 5 лет назад

      I also would like an answer to the Roth IRA /FUN question 😀 Thanks 🙏

    • @Sylvan_dB
      @Sylvan_dB 5 лет назад

      Yes. You need a tax accounting professional. Roth or not does not affect this issue, which is if the IRA will owe taxes or not. Roth status only affects you, the IRA is a separate entity.

    • @stevewilliams1834
      @stevewilliams1834 Год назад

      if You do this in a Roth IRA you will still need to file a k-1 but only taxes would UBTI. If you have your account at Fidelity they will file a tax report if UBIT > $1000. and send the required taxes to the the IRS. Fidelity will take the tax from your Roth. Usually most years my MLPs do not exceed $1000 UBIT. Fidelity does not charge you to file the UBTI. This the easy to handle the complexity of MLPs
      . All other gains as with all Roth's are untaxed.

  • @robertbarry1792
    @robertbarry1792 3 года назад

    How do you know when the K1 will be sent?

    • @ppcian
      @ppcian  3 года назад

      I received mine a few days ago. They should be arriving any day now! Wishing you a great one. (Disclosure: I am long FUN)

  • @jimh4167
    @jimh4167 Год назад

    When MLPS are sold... lets say you've hold them 20 years and they have deprecated to zero...
    On sale. Are they taxed as short term capital gains ..
    Or long term capital gains...

  • @martinstanleyelkjr4923
    @martinstanleyelkjr4923 5 лет назад

    Hey Ian, looking into MLPs, however i noticed that the payout ratios Are huge, more then 100 % often,(source Yahoo finance), even FUN says 143 % payout ? Can you clarify or explain ? Is this not a bad sign or does it matter in a MLP ? Hope to heat some insight. Thanks.

    • @ppcian
      @ppcian  5 лет назад

      Great question! My guess is that it comes down to amortization and depreciation (which end up being beneficial for investors). These concepts are explained in this new video via the lens of REITs (which have many similarities to MLPs). I think you’ll enjoy this video: ruclips.net/video/CREUVmVIWig/видео.html Please see timestamps for section on REITs. Also, this extensive video analysis of MLP FUN explains these concepts too: ruclips.net/video/hhujBcrq8Xg/видео.html And, it has a cool accompanying spreadsheet. (Disclosure: I am long FUN)

  • @ronlasiere4114
    @ronlasiere4114 5 лет назад +6

    Dang, working through the K1 myself for an MLP got me to sell it and reinvest in a corp - wasnt worth the hassle or fee.
    Check out DOW Ian - it just split from DuPont and now could be the perfect time to buy. Theyve stated they want to focus on returns to shareholder... even moreso than they did before!

    • @antilogism
      @antilogism Год назад

      TaxAct handles it for free but still maybe not worth it.

  • @sofakinginsane
    @sofakinginsane 5 лет назад

    Not a fan of MLPs myself, but love the dividends, so what to do? AMLP etf is better option. No K-1 just 1099 and I can put it in my 401k or Roth. The expense ratio is a bit high, but worth it for the not having the headaches with K-1s.

  • @alex319217
    @alex319217 5 лет назад

    Hey Ian, Walgreens just dropped 13% yesterday, what is your opinion on opening a position?

  • @sep69
    @sep69 5 лет назад +1

    Get well soon ppcian ! And thank you for another great video. Coming from Europe and not being able to find much information on how mlp's are taxed for us I'll skip owning them for now.

    • @gary62or45
      @gary62or45 5 лет назад

      smart move, see comment above

  • @michaelbacile8439
    @michaelbacile8439 2 года назад

    Man.. the more I look into investing the more I realize I must not be that intelligent 😒. Everyone in my family just works their ass off until they die, leaving the heirs with nothing to build on. I live extremely frugally in hopes to leave my kids with something. I’ve watched a lot of your videos and I get a ton of value out of them but for some reason I can’t comprehend this one even after watching it 3 times. MLP’s must not be for me lol

  • @InvestingRobinhoodInvestor
    @InvestingRobinhoodInvestor 5 лет назад +1

    Great video Ian! Feel better man

  • @a_anonymous_m
    @a_anonymous_m 5 лет назад

    Very informative insights.👍

  • @czrmartins
    @czrmartins 5 лет назад

    Foreign investors have to write this k1 too?

  • @richardcarlin1332
    @richardcarlin1332 5 лет назад

    Invest in funds that own lots of MLPs and give you a 1099. There are also MLPs that directly give you a 1099. The other item with MLPs, especially pipeline stocks is paying taxes to the states the pipelines go through.

  • @billyjohnson9166
    @billyjohnson9166 5 лет назад

    Ian love your videos. Hope you feel better soon. Cedar Fair is a good one

  • @jadler10
    @jadler10 3 года назад

    Great video, very informative

  • @Doso777
    @Doso777 5 лет назад

    As someone that is not from the USA, an ETF for MLPs is much easier to handle.

  • @ttsurv5329
    @ttsurv5329 5 лет назад

    Hi Ian Thanks for the great info. One thing I have heard about K-1s is if your distributions are large enough you may have to file Multiple State Income taxes is that true?

    • @markmyjak7739
      @markmyjak7739 9 месяцев назад

      Good question. I received a K-1 from Icahn Enterprises. And there was a list with 3 states: FL, NV & MA. On my K-1, line item 13H, is a tax credit. The tax credit is for ethanol production.

  • @jonnes__4657
    @jonnes__4657 5 лет назад +1

    Unfortunately in my country every distribution of a MLP or LLC will be fully taxed and I have to pay in addition the US withholding-tax of 30%!
    .

    • @ppcian
      @ppcian  5 лет назад

      Yikes! That’s a lot of taxes! Thanks for sharing.

  • @ChrisMFlorida
    @ChrisMFlorida 5 лет назад

    Always learning from your videos 👍 Get well soon 😎

  • @AchillesAnew1
    @AchillesAnew1 5 лет назад

    Keep making videos, we need more guys like you!

    • @ppcian
      @ppcian  5 лет назад

      Cannot thank you enough for the kind words! 🙏

  • @RockTheCage55
    @RockTheCage55 5 лет назад

    Ian do u drip your MLP or does that have any advantage at all. Does DRIPing have any advantage for MLPs? I've read up on putting MLP in a Roth/IRA and it sounds like a mess so i'm not going to do that.

  • @kimchu8974
    @kimchu8974 5 лет назад

    Sorry, I meant DCP Midstream LP? Thanks.

  • @JEFF4X41
    @JEFF4X41 5 лет назад

    how about a ETF that buys these?

  • @GregK235
    @GregK235 5 лет назад

    Thank-you for a clear overview on MLP distributions. You make a very good point to buy in sufficiently large lots to minimize the record keeping on the return of capital and cost basis on those lots. What do you consider when choosing to invest in the MLP or the GP?

    • @ppcian
      @ppcian  5 лет назад

      Thanks so much! I personally would only consider an MLP/management team with an incredibly long history of success.

  • @GlennShook
    @GlennShook 5 лет назад +1

    Love my Sun lp stock other then I had to wait forever for the k1 form to finally come.

  • @michaelak1416
    @michaelak1416 Год назад

    FUN is paying 2.6% as of today.... still a fav?

  • @ronnix23
    @ronnix23 5 лет назад

    Thanks for this video Ian. I bought my first two MLPs in January (BEP & BIP), so I guess I'll find out about those K-1s next year at tax time. I will definitely keep this video in mind though as this is
    the best explanation of MLPs I've seen. Keep up the good work.

    • @ppcian
      @ppcian  5 лет назад

      Right on! Thanks for sharing, Rod! Wishing you all the greatest!

  • @ZeIose
    @ZeIose 5 лет назад

    Thanks for going a little more in depth on this topic.
    It seems that you have a tax professional. If I had a tax professional and let's say I some how bought a MLP with out knowing, would they figure it out for me and would be able get every thing ironed out?
    I understand that with or without a tax professional that this adds a degree of complication to the portfolio that I, as a newer investor am just not yet comfortable with. But would having a tax professional to take on the responsibility relieve you of the additional complexity?

    • @ppcian
      @ppcian  5 лет назад

      Tax professional (who has experience with partnerships) would truly be an asset to an MLP investor, in my opinion. Wishing you all the greatest!

  • @frameofmind8800
    @frameofmind8800 5 лет назад

    Lol I just did my k1 for taxes nice information

  • @kimchu8974
    @kimchu8974 5 лет назад

    Can you comment on DCF? Thanks.

  • @cah8291
    @cah8291 5 лет назад

    Thanks for clarifying the advantage of owning an MLP in a taxable account Ian. I am eager to start a position, but at these heights I'd rather not. As for holding MLPs in an IRA, my understanding is that it depends on how much of the income qualifies as unrelated business taxable income (UBTI) and as long as it is under $500 you dont have to worry about it. I certainly didnt have a problem when I filed for taxes this year.

    • @ppcian
      @ppcian  5 лет назад

      Thanks for sharing your insights and experience!

  • @moresugartradercc2744
    @moresugartradercc2744 5 лет назад

    i use to have a lot of these MLPs but i only have one that is FUN

  • @streetrider2487
    @streetrider2487 5 лет назад

    so how do u make money from MLPs if they just keep ROC instead of dividends and the price keeps dropping and u keep losing capital??? ponzi scheme?

  • @stephaniesommers407
    @stephaniesommers407 5 лет назад

    Well I guess I'm selling my FUN this sounds like too much trouble.

  • @Iikeing
    @Iikeing 5 лет назад +2

    K-1 Is never worth the trouble unless your willing to take a big position to makeup for the tax headache

    • @emsea1658
      @emsea1658 5 лет назад +5

      Fallone I’ve heard this before but I have an MLP and all I did was wait an extra couple week for the k1 in the mail then punch the few matching boxes into my tax program 5 minutes or less. I don’t get the deal everyone says they are so much tedious work?

    • @ppcian
      @ppcian  5 лет назад

      I do tend to agree K-1 is much more worth it for a serious/big position! Wishing you all the best!

    • @davidlong3262
      @davidlong3262 2 года назад

      @@emsea1658 I don't get it either, I just bought into EPD, I thought they would send me a k1 already filled out to hand to my CPA ????

  • @patrickgriffin8628
    @patrickgriffin8628 4 года назад

    What are your thoughts on MLP's that have had their price beaten down from covid and now have massive yields? ET is around a 20% yield at current prices. Are you a fan of ET or others at these lower prices and higher yields?

    • @mohamedgoldstein5565
      @mohamedgoldstein5565 3 года назад +1

      I bought ET in the 5.5s and am not struggling with the taxes. But very happy with the returns.

    • @patrickgriffin8628
      @patrickgriffin8628 3 года назад

      @@mohamedgoldstein5565 that's a great price! I think I'm up 30% right now on ET.

    • @mohamedgoldstein5565
      @mohamedgoldstein5565 3 года назад

      @@patrickgriffin8628 Yup. I have ET and ENBL. The last 1 month has been fantastic. But, how did you do your taxes? I am struggling with H&R Block premium right now.

    • @patrickgriffin8628
      @patrickgriffin8628 3 года назад

      @@mohamedgoldstein5565 what part is giving you trouble on filing the taxes? You should be receiving a K-1 from Energy Transfer if you haven't yet and you'll put that info on your tax return. I just scan the info and send it to my cpa.

    • @mohamedgoldstein5565
      @mohamedgoldstein5565 3 года назад

      @@patrickgriffin8628 ET K-1s are available only on 3/17. But I have uploaded ENBL K-1s. Just wanted to know if I have to file taxes in all the states (there is a bunch) listed in the K-1 form.

  • @eurekasevenwave2297
    @eurekasevenwave2297 4 года назад +1

    Seems like the tax fuckery makes up for the massive amount of gains you could make if you compounded dividends with these stocks.
    I'm thinking about investing in them for NY real estate exposure, but not in my Roth IRA (due to Uncle Sam spreading the IRA's cheeks once you do...)

  • @cameriqueTV
    @cameriqueTV 5 лет назад

    Owning MLPs raise your chances of an IRS audit.

  • @RWL719
    @RWL719 4 года назад

    Good job.... check out ET and CRF and see if it is worth a video.... thanks..

  • @livinglife7042
    @livinglife7042 5 лет назад

    Get well buddy

    • @ppcian
      @ppcian  5 лет назад

      Thanks, my friend!

  • @zoukchata
    @zoukchata Год назад

    Was it COVID!?... Eerie.

  • @cuauhtliastorga7869
    @cuauhtliastorga7869 5 лет назад

    lAN YOU SHOULD A VIDEO ON HORMEL I WOULD LIKE SEE WHAT YOU LIKE & DISLIKE ABOUT IT....

  • @ProdiiigyStarcraft
    @ProdiiigyStarcraft 5 лет назад

    First

    • @ppcian
      @ppcian  5 лет назад

      You got 1st!

  • @jeremiahburkett4172
    @jeremiahburkett4172 4 года назад

    No expert, but please stop reaching out to us so much. Aka haaaands, dawg. 😬
    Goood info though. 🥸