This concern for tax considerations is surprising me. I don't do my own tax prep, deferring to a fabulous accounting firm at the opposite end of our country---I'm in southernmost Texas while Joy and her firm are in Seattle, WA. She's incredibly hardworking and well intentioned, handling everything I throw at her.
My tax stuff is probably as complicated as you might imagine. Buying and selling stocks is part of the picture, also long term sales versus short. Then there's the fact that I'm over 65 and collecting social security monthly. Also I have a duplex on the ranch plus horses and more...so you can see this is more difficult than most individuals might handle independently.
That said, I'm the wrong person to give advice or even pretend to know when it comes to taxes. My CPA is so thorough, it seems to me that she'd have expressed concern by now if there were reason for concern. Or it may be that this whole tax worry is over nothing.
One thing is for absolute certain: At times I have had up to 9,000 units of NTI. When units are above $27 as has happened in the past couple of years, that meant I had a quarter of a million dollars in this one company. That is a lot of money for me to have in an "aggressive account" as opposed to the purchase of land I think of as "passive." If I were opening myself to needless taxation, it would have come up, surely.
There have also been two passive purchases over the past twelve months involving land. I sold a lot of NTI units to come up with part of the cash for the ranch and then a follow-on purchase of five acres more. I don't hesitate to think of cash tied up in stocks as available cash for that's exactly what it was when I purchased units or shares. And it keeps me flying straight to always recognize that stocks are just another word for money except for the risk involved. MLPs lessen the risk factor for me.
If I were afraid of the potential tax bit, I'd go to H&R Block and tell them flat out that before I'd consider them for handling my tax work, I need to know the implications of this discussion. I'd be watching the advisor to determine his/her familiarity with my situation and then take it from there. Meanwhile, I'd stand to discover the answer to your question. Thus it might be a win-win for Block and me.
You're sniffing around and I'm sure you're going to get answers. Please share them here and, if you'd be so kind, also at the CVRR and ALDW boards. This is an instance where we all get to work together for the greater good that common interest offers.
Thank you!
Day to day I will usually be buying and selling frequently throughout the week. The returns on my investments in stocks are so good that I don't care about the cost of my tax preparation. However, my bill for tax prep covering 2014 came out to right around $500. That is a trifling amount when you consider that I'm raking in a nice income.
AI
