crude oil at lowest price since August

[WTF]

Originally Posted by Tiny

I took note of this thread. Crude oil prices plummeted because of President Biden. Haha. It's interesting you bumped the thread, since you're on Vitaman's and Biden's side on this issue.

.

I'm on the side of Realpolitik.

I watch what they do, not what they say.

I've continually posted that Biden is mostly giving lip service to the greenies.

I've continually posted that energy companies are in business to make money.

Enterprise stated it planned to increase dividends and increase share buybacks and have proceeded to do both.

Knowing that Biden is practical and that his ban was mostly bravado because oil prices were down...not because of Biden but because of the 3rd wave of Covid which was just another wave and would pass was the perfect time imho to buy into energy.

So once again, concerning investing...I'm on no side.

I see a much longer bridge that the AOC's of the world.

[WTF]

Originally Posted by Tiny

I've never bought a publicly traded partnership, partly because I didn't want to jack with the tax compliance. What happens when you sell this? How do you calculate recapture of depreciation?

.

The tax issue is related to the dividend. It can't be rolled over in an IRA. It must be taken out yearly. Huge tax penalty if not.


The stock gain is treated like any other as far as I know.

[Tiny]

Originally Posted by WTF

The tax issue is related to the dividend. It can't be rolled over in an IRA. It must be taken out yearly. Huge tax penalty if not.


The stock gain is treated like any other as far as I know.

There should be a line on your form K-1 for depreciation. Your accountant would take the depreciation from your K-1 to your Form 1040 and use it as a deduction. I've read that for some LP's, the depreciation deduction may eliminate most of the taxable income from the dividend, or even leave you with a tax loss.

The problem is that when you go to sell the shares, I think you have to recognize all the accumulated depreciation from years past as ordinary income on your tax return. So you're really just delaying recognition of taxable income, if you eventually sell the shares. And the tax rate will potentially be far higher than today if the Progressives get their way. Right now the dividends from LP's like yours are taxed at a maximum federal rate of 40.8%, versus 23.8% for corporations.

Anyway, leaving all other considerations aside, your 7% dividend yield on your Enterprise shares looks enticing, but perhaps not as much if you ultimately end up paying a 40.8% tax on the income. That takes your 7% yield down to a 4% after tax yield.

Then there's their debt and the potential for the Progressives to make your investment worthless someday. That could make it where the shares aren't worth holding onto until you die. If you hold them at death instead of selling the shares, your heirs will escape paying the tax on the recaptured depreciation when they sell. Unless the Progressives eliminate stepped up cost basis at death.

I don't have experience with this because I've never owned a publicly traded LP. That's why I was asking you.

[Tiny]

Originally Posted by WTF

I'm on the side of Realpolitik.

I watch what they do, not what they say.

I've continually posted that Biden is mostly giving lip service to the greenies.

I've continually posted that energy companies are in business to make money.

Enterprise stated it planned to increase dividends and increase share buybacks and have proceeded to do both.

Knowing that Biden is practical and that his ban was mostly bravado because oil prices were down...not because of Biden but because of the 3rd wave of Covid which was just another wave and would pass was the perfect time imho to buy into energy.

So once again, concerning investing...I'm on no side.

I see a much longer bridge that the AOC's of the world.

Yes, if the risk of bad policy is baked into share prices, and the market has assumed things will be worse than what comes to pass, then maybe that creates opportunity. And Kudos for plunging in when others were afraid to take the risk.

[LexusLover]

OIL (BRENT)Commodity
104.75-2.54-2.37%
Official Close 4/1/2022

Someone told Bitten he'll save the country err the PARTY by tapping the reserves.

[texassapper]

“Tapping our strategic oil reserves instead of drilling is as stupid as tapping your 401k instead of going to work.”

[WTF]

Originally Posted by Tiny

There should be a line on your form K-1 for depreciation. Your accountant would take the depreciation from your K-1 to your Form 1040 and use it as a deduction. I've read that for some LP's, the depreciation deduction may eliminate most of the taxable income from the dividend, or even leave you with a tax loss.

The problem is that when you go to sell the shares, I think you have to recognize all the accumulated depreciation from years past as ordinary income on your tax return. So you're really just delaying recognition of taxable income, if you eventually sell the shares. And the tax rate will potentially be far higher than today if the Progressives get their way. Right now the dividends from LP's like yours are taxed at a maximum federal rate of 40.8%, versus 23.8% for corporations.

Anyway, leaving all other considerations aside, your 7% dividend yield on your Enterprise shares looks enticing, but perhaps not as much if you ultimately end up paying a 40.8% tax on the income. That takes your 7% yield down to a 4% after tax yield.

Then there's their debt and the potential for the Progressives to make your investment worthless someday. That could make it where the shares aren't worth holding onto until you die. If you hold them at death instead of selling the shares, your heirs will escape paying the tax on the recaptured depreciation when they sell. Unless the Progressives eliminate stepped up cost basis at death.
.

GaLee....you always assume the worst. First off. Almost half that stock was bought at a 10plus yield and the rest above 8.5...probably closer to 9.

Yes the dividends are taxes as ordinary income and I'm to lazy to look and see at what point the rate is 40%. Obviously poor folks like myself don't have that worry.

I may be wrong but the selling of shares is taxed at either long or short term capital gain.

Don't blame to debt on progressive...you Reagan lovers are bad if not worse at piling it up

[royamcr]

Originally Posted by buzzlghtyr401

Crude at it's lowest price according to who?
Surely you're not suggesting I give thanks to Comrade Bidumb are you? He's the one that raised prices as soon as he got into office. (by cheating if you don't remember). This time last year, crude oil was 1/2 the price it is now.

Nope, I'm not thanking anyone. But I am BLAMING someone.

Guess you forgot the strong arm Trump oil deal with Opec that ran for 2 years which cut production by 9 million barrels a day. Biden got this reduce to 4 million a day. Now the deal is over this month. FDJT

[texassapper]

U.S. Wants More Oil From Canada.

Hmm if only there were a safer more efficient way to bring oil from Canada to the US rather than by rail.....

I don't know... Maybe a pipeline would be a good idea?

But didn't Biden cancel a pipeline from Canada hours after being sworn into office?

Seems like a stupid move in retrospect. Unless of course your goal is to fcuk the average consumer.

[lustylad]

Originally Posted by royamcr

Guess you forgot the strong arm Trump oil deal with Opec that ran for 2 years which cut production by 9 million barrels a day...

^^^ Anyone know wtf this knucklehead is talking about? He seems to have a whacked-out imagination.

Guess we should all just ignore him!

[LexusLover]

Originally Posted by lustylad

^^^ Anyone know wtf this knucklehead is talking about? He seems to have a whacked-out imagination.

Guess we should all just ignore him!

He's talking about "Trump" ... He'd rather than talk about Bitten!

He's hoping no one will ask him if he voted for Bitten.

[WTF]

Originally Posted by texassapper

U.S. Wants More Oil From Canada.

Hmm if only there were a safer more efficient way to bring oil from Canada to the US rather than by rail.....

I don't know... Maybe a pipeline would be a good idea?

But didn't Biden cancel a pipeline from Canada hours after being sworn into office?

Seems like a stupid move in retrospect. Unless of course your goal is to fcuk the average consumer.

You do realize we still get much of that oil by rail....

[texassapper]

Originally Posted by WTF

You do realize we still get much of that oil by rail....

You do realize with the pipeline canceled...it's going to continue to come by rail... which is less safe for the environment than a pipeline...but yeah, whatevs...

[royamcr]

Originally Posted by lustylad

^^^ Anyone know wtf this knucklehead is talking about? He seems to have a whacked-out imagination.

Guess we should all just ignore him!

Shows you don't know a god damn thing, or just blind as fuck... You don't know about the 2 year OPEC deal trump made with OPEC? Jesus fucking christ, why the fuck do you think Opec wasn't increasing output until now?

You need to educate yourself you are making your self look stupid.

[The_Waco_Kid]

Originally Posted by royamcr

Shows you don't know a god damn thing, or just blind as fuck... You don't know about the 2 year OPEC deal trump made with OPEC? Jesus fucking christ, why the fuck do you think Opec wasn't increasing output until now?

You need to educate yourself you are making your self look stupid.

this deal?

OPEC and allies’ oil production cut is Trump’s ‘biggest and most complex’ deal ever: Dan Yergin

https://www.cnbc.com/2020/04/13/opec...an-yergin.html

• As the Organization of the Petroleum Exporting Countries and its allies came to an agreement on a record cut in oil production, U.S. President Donald Trump may have struck his “biggest and most complex deal,” according to oil expert Dan Yergin.
• Commenting on the deal that has been struck by OPEC+, Yergin said it has “bought time” and avoided a “disaster” for the oil industry.

It looked like a mission impossible a few weeks ago.
Dan Yergin
vice chairman, IHS Markit

As the Organization of the Petroleum Exporting Countries and its allies came to an agreement on a record cut in oil production, U.S. President Donald Trump may have struck his “biggest and most complex deal,” according to oil expert Dan Yergin.


“What was so interesting — among many, very interesting things in this unprecedented event — was the turnaround, the pivot by Donald Trump,” Yergin, who is vice chairman at IHS Markit, told CNBC’s “Street Signs” on Monday.


Just a few weeks ago, Trump had said the early-March plunge in oil prices were “good for the consumer” as it meant lower gasoline prices. That drop in crude prices had been triggered by an oil price war between Saudi Arabia and Russia after Moscow rejected a proposal by OPEC to cut 1.5 million barrels of production per day.


The sharp decline in oil prices spurred giant capex and job cuts across the U.S. shale industry, which has some of the highest production costs in the world.


But Yergin said: ”(Trump) came to see this as a national security issue, also an employment issue, and a very important factor in the U.S. economy … and he just jumped in.”


“This must be the biggest and most complex deal (Trump)’s ever made,” Yergin said. “Not only was he a deal maker, but he was also something of a divorce mediator.”
Yergin said there were two main factors driving the turnaround to the deal that just six weeks ago “would not have seemed possible.”

Firstly, he said, the price of oil was in danger of crashing without a deal as there was limited inventory space left. That would have had “severe repercussions” beyond the oil industry itself and other sectors such as finance.


The other driving factor was likely due to a dearth in oil demand, where the “producers found they couldn’t sell their oil.” Crude demand has taken a hit in recent weeks as measures taken by authorities to stem the spread of the coronavirus pandemic have left major economies effectively frozen.


“I think all those things came together but then it was this dealmaker ... Donald Trump who got on the phones,” Yergin said. “I would say it looked like a mission impossible a few weeks ago. Turned out, it was mission possible.”


His comments came after OPEC+ finalized an agreement to cut production by 9.7 million barrels per day — the single largest output cut in history.


OPEC+ is hoping that nations outside of the group, including the U.S., Canada and Norway, will also cut back on production in an effort to shore up prices. For his part, Trump has noted that market forces would naturally curb output stateside, after previously stopping short of saying the U.S. would scale back production.

Deal has averted ‘disaster’

Commenting on the deal that has been struck by OPEC+, Yergin said it has “bought time” and avoided what is known as a “tank top” by the end of April to beginning of May.


He also said it addresses another problem of the build up in inventories that were so high that they would have left pressure on the market over the next few years.


“This agreement goes two years, so it’s also meant to manage the inventories downward over that period of time,” Yergin said. “What this has done is averted what really would have been a disaster for the oil industry and I think it does give some stabilization.”


Still, he acknowledged that the whole problem was not addressed, though the deal “goes a long way” and the alternative was a “pretty steep drop.”
— CNBC’s Pippa Stevens and Natasha Turak contributed to this report.