Linn Energy
Posted: Wed Mar 23, 2016 1:15 pm
Hi Dan. Any thoughts into the rationale of Linn Energy exchanging their shares into Linn Co.
I do not follow Line Energy anymore.
If you own LINE, you should definitely take exchange offer. If you do not, you will be allocated ordinary taxable income as a "partner" because of the huge gains they are going to book as result of buying their public debt back at a big discount. You will be allocated taxable income and get no cash to pay the tax.
Remember, capital losses cannot offset ordinary income. Individuals can only deduct $3,000 per year of capital losses.