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To: zebra4o1 who wrote (96741)2/14/2008 8:19:29 AM
From: Ed Ajootian  Read Replies (2) | Respond to of 206325
 
zebra, see the next post after yours, for starters. The other thing you need to know is that distributions from Linn must reduce the basis in your stock. So when you go to sell your stock (assuming you or your tax preparer remembers to reduce your basis by the distributions), you show more gain on sale of your stock. That is why I describe the Linn distributions as being "tax deferred" as opposed to, say, "tax-free".

If you never sell your shares, of course, the distributions will in effect be permanently "tax free". Unless you are Warren Buffet my guess is that you will probably sell your shares at some point.