Dividend Tax Information

Return Of Capital Tax Information

A corporation’s quarterly distribution of cash is characterized as a taxable dividend (qualified dividend) to the extent it comes out of the corporation’s earnings and profits (“E&P”). Any part of the distribution that exceeds E&P is treated as a non-taxable return of capital (non-dividend distribution) which reduces the shareholder’s basis in the stock. If the return of capital exceeds the stock basis, the excess is treated as a capital gain.

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2019 KMI Dividends

We currently expect KMI dividends paid in (i) Q1 and Q2 of 2019 will be taxable, qualified dividends, (ii) Q3 of 2019 will be treated partially as a return of capital, and (iii) Q4 of 2019 will be treated largely as a return of capital.

We will update these expectations on this webpage during the year via a draft Form 8937. This form will indicate the specific amount of dividends paid during 2019 expected to be treated as a return of capital. Please note that these are estimates only, and the actual tax treatment of the dividends paid in 2019 will be finalized in early 2020.

2018 KMI Dividends

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