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Strategies & Market Trends : Value Investing

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To: research1234 who wrote (66605)2/21/2021 1:14:15 PM
From: Elroy  Read Replies (1) of 78898
 
if a MLP is sold from a taxable account, the accumulated distributions get taxed at ordinary rates.

My understanding is the distribution lowers your unit cost basis, so the capital gain (if there is a gain) on the MLP unit sale would be larger when you sell an MLP that has paid out lots of distributions AND appreciated in value.

Myself ... I am happy to pay high taxes because it means I am making lots of money. It's much better than avoiding high taxes by not making any money. Yessirree.
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