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K1 from Oaktree capital group

I know many of you on this board invested in OAK, have you received official K1 from them yet? Thanks.
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Comments

  • I received one today from BX. Held the stock for a short time but still got one. Unexpected but I don't think I'll have to amend my 1040 long since filed.
  • edited April 2015
    With OAK, you get (or should have gotten) a card in the mail saying that the preliminary K-1 is available. You can get that online. I was surprised BX sent an official K1 this year. They have done "preliminary" ones in the past.
    BenWP said:

    I received one today from BX. Held the stock for a short time but still got one. Unexpected but I don't think I'll have to amend my 1040 long since filed.

    If you hold an MLP for a minute, you'll still get a K-1. I think the thing that probably gets people more than anything every year is that anyone trading many of the commodity ETFs/CEFs winds up getting one and probably had no clue. I can't imagine the amount of unexpected K-1s that arrive every year.

    I do think there should be a time limit that you have to hold one of these things to get a K-1, but I doubt that'll ever happen.

    Funny related story: have an MLP that bought an MLP, have to file separate for both. Have a lot of delightful K1s to deal with this year...





  • @Scott: Not to be morbid, but my father-in-law held many MLPs, had a stroke and died. The lawyers had a terrible time figuring out the basis for the funds and the estate paid them big bucks. I don't think anyone in the family had a clue as to what was in his portfolio or how to wind it down.
  • edited April 2015
    BenWP said:

    @Scott: Not to be morbid, but my father-in-law held many MLPs, had a stroke and died. The lawyers had a terrible time figuring out the basis for the funds and the estate paid them big bucks. I don't think anyone in the family had a clue as to what was in his portfolio or how to wind it down.

    I'm very sorry to hear that!:(

    I think there is an aspect where I have to de-complicate things a little myself, it just becomes too much effort, although I have to say I do like Turbotax in terms of helping me go through K-1's, but entering in several is an effort to sit and do. Plus, the eventuality of having to figure out cost basis, etc.

    I have six remaining (after KMP gone because of the merger, a couple others that I dumped last year or early this year), but I don't want to sell any of the remainder. I'm hopeful that one (Brookfield Property) will eventually become a REIT similar to what WP Carey did. I was thrilled to see one or two this year only have one or two numbers to enter.
  • The one you can downloaded from their web is estimate; my Tax guy told me that I need to file a Disclosure Statement form 8275 if using this K1 estimate. I received all other final K1s except this one.
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  • @ Maurice: You mean to tell me you're avoiding a quality investment in OAK with a 4%+
    dividend because of a no-brainer K-1 tax form. There is a simple answer, its called a tax accountant. Your OAK dividends alone will pay for that. "The only thing you have to fear, is fear itself."
    Regards,
    Ted
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  • edited April 2015
    Maurice said:

    @ Ted When you stick with financial advice, I find it to be top notch. I will reconsider my MLP decision.


    I guess here's the thing. I do not love the K1s. However, if you really want to own a Blackstone or a Oaktree or one of the Brookfield spin-offs or a pipeline co, you have to put up with it. You just have to really feel strongly about it (whether OAK or BX or something else.) Additionally, for most people I'd really stay stick with no more than 2-3.

    I own 6 (optimally, I'd like to have no more than 5 in a given year) and I would have a difficult time selling any of them at this point. I'll admit that I even have to be a little better about being selective with these and, like everything else, have to really stick with "best ideas" only. There's one I had to do that I no longer own and one that I'll have to do next year that I sold after a couple of weeks early this year.
  • I am assuming that holding these stocks in a tax deferred account makes the K1 issue a moot point? I'm probably wrong on that.
  • edited April 2015
    -
  • Hi @JohnChisum

    A Google search list regarding K-1's and tax deferred accounts.

    Nice to find your return here.

    Take care,
    Catch
  • Thanks for that @catch22. I had that feeling I was wrong but my small investment shouldn't throw off much. Something to look forward to next spring with the accountant.
  • Back to Oaktree again; do you guys think it is necessary to file Disclosure Statement form 8275 if using the current K1 estimate from OAK
  • Have a similar question. I own it through Schwab and have got estimated break-up through Oaktree. I was trying to enter the information using H&R Block 2014, but get the message that publically traded partnerships are beyond the scope of this program. Which program are you using to report it?
  • @ Catch & John - I found the list of Googled articles to have some fairly misleading titles. However, once one starts reading the articles the truth starts to surface. The only tax issue to holding an MLP in an IRA account has to do with UBTI or UBIT (unrelated business tax income) in excess of $1000/year. If your MLP reports UBTI greater than this your IRA, not you, will have to declare and pay the required tax. Your brokerage firm completes the required forms and may charge you for this service.

    Having owned multiple MLP's in my retirement IRA's for over 10 years now I have never seen a positive UBTI much less one over $1000. In fact, as one article mentioned, TurboTax actually kicks the K-1 out of tax reporting if you state that the MLP is held in a retirement account. Do consult with your accountant or tax preparer and you should find that there are no issues.
  • Kaspa said:

    Have a similar question. I own it through Schwab and have got estimated break-up through Oaktree. I was trying to enter the information using H&R Block 2014, but get the message that publically traded partnerships are beyond the scope of this program. Which program are you using to report it?

    TT, although you have to get the upgraded version.
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  • @Mark, Thanks for that update. Much appreciated.
  • @Maurice - no problem using TT when filing a k-1 on an LLP in a regular (taxable) account. In many cases one can even import the k-1 data into TT directly from the proper websites.
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  • Thanks Scott and Mark.
  • I filed my tax using TT in the past few years without any problems with K1, the major issue i have this year is that my accountant don't feel comfortable to file the return with estimated K1 from Oaktree and want me to file the disclosure form.
  • edited April 2015
    ETE is just wonderful. It's broken down into 6 separate entities (because it owns multiple underlying partnerships) and you have to fill out a K-1 for each.

    If ETE hasn't done as well as it has and management hasn't been as good as it has (the CEO/chairman has bought something like $80 million in shares in the last several months) I'd be tossing it post haste. I'm hoping that it pulls a Kinder at some point and ultimately just takes all the parts and pieces under the parent/GP.

    Speaking of insider pipeline co purchases, look at EPD:
    Mar 13, 2015 WILLIAMS RANDA DUNCAN
    Director
    3,225,057 Indirect Purchase at $31.01 per share. 100,009,017

    Mar 2, 2015 WILLIAMS RANDA DUNCAN
    Director
    1,498,055 Indirect Purchase at $34 per share. 50,933,870

  • edited April 2015
    ETE continuing to make a case for itself, despite seeming like a K-1-related episode of the "Twilight Zone".

    Added to Goldman's conviction buy list with an $86 target this AM, about $20 higher than current price.
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  • Schedule K-1 Form 1065 in TT.
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