The Changing Flow-Through Conversation
Most Advisors and their clients have been disappointed with the results of their flow-through LP investment the last few years.
There are a few firms who have worked on changing their flow-through LP results and their flow-through conversation with Advisors.
Two innovative flow-through LP issuers who are focused on the oil and gas sector have introduced a CEE Portfolio and a CDE Portfolio
which further changes the conversation with better performance and a different tax deduction. These two issuers have created the
opportunity for Flow-Through Investors to choose a CEE portfolio to get a 100% tax deduction in the year of their investment or choose
a CDE portfolio for lower risk and a 100% tax deduction calculated on an annual 30% declining balance basis. The performance
and risk difference between a CEE portfolio and a CDE portfolio comes down to the profile and activity of the oil and gas company.
The following is a review of the differences:
LPs Offering a CEE Portfolio and CDE Portfolio
Create Opportunity to Customize
Working with an Advisor, Flow-Through Investors
can choose a CEE portfolio for highest annual tax
deduction, a CDE portfolio for lower risk and lower
annual tax deduction, or blend a CEE portfolio and a
CDE portfolio to custom tailor a flow-through investment
and tax solution.
A New CDE Tax Deduction Laddering Strategy
Flow-Through Investors who purchase flow-through
LP investments annually can create a tax deduction
“Laddering Strategy” for themselves investing in flow-
through LPs which offer a CDE portfolio. The following
illustrates the accumulating CDE tax deduction with an
annual investment over 8 years:
Flow-Through Investors have more choices today, more custom tailoring
abilities and a new tax deduction strategy they can discuss with their private capital market advisors.
For more information contact:
email@example.com | 604.601.5802