KYN is an interesting investment a club asked us about this morning. It's a corporation that invests in MLPs. Since it's a corporation, any income comes to you as corporate distributions, not the partnership distributions that cause problems with your investment club accounting.when you purchase an MLP directly.

I know nothing about whether KYN is a good investment or not, but it would not cause you accounting or tax problems in bivio.

They have a really nice page about tax issues relating to investing in them:

http://www.kaynefunds.com/kyn/tax-information/

The only thing I can see that you might want to consider is the fact that it looks like each of their distributions will probably have to be split up at tax time between dividends and return of capital. Since you won't find out what the split will be until you get your 1099 DIV by mid February, this will mean it will take a little longer each year for you to know the total tax issues related to this investment. In addition, I also wonder if revised 1099's might be more common since the underlying MLP's themselves actually have until April 15 to file their own taxes and send their tax information out.

Other than that, it is not difficult to make the split up entries. bivio can easily handle them.

Just thought I'd pass it along.

Laurie Frederiksen
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