| | | Re: UAN - using the Gain/Loss Calculator for CVR Partners, LP Tax Package Support
On that site I was able to create a "Projected 2023 Gain/Loss" report
Their calculator prepares a table based on your Projected Units To Sell vs Units to Prorate
The benefit from the calculator it takes the First In First Out shares and then calculates:
Units Sold, Sales Proceeds, Purchase Amount, Cumulative Adjustments, Total Gain/Loss, Ordinary Gain & Capital Gain
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From this table I arrived at the 'Ordinary Gain' I wanted to recognize for 2023, cleaning out the old shares which typically have the largest cumulative adjustments (& lowest cost basis).
You can prepare this table any time from the Tax Package Support Web Site using their calculator & the data they have in the system.
I ran this report 5/31/2023 and determined I wanted to close out 30% of my shares in 2023. At the time the price was $96.87/share. I waited for the announced dividend distributions sold a few shares in June between $81-$86. Then just decided to do my complete sale if/when the share price went back over $90/share.
As it turned out got all of my scheduled sales completed Monday at $92-$94.
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I did not want to close the entire position as I have a huge gain. Doing this calculation I was able to flush out all of my old shares bringing my FIFO shares current to 2/2020 (had shares going back to 8/2015).
I am generally bullish on fertilizer over the next several years and as I am in this already, will look at selling another 25% this time next year. By doing no more transactions, I will not trigger anymore recapture and just collect dividend income tax free (until the next sales).
UAN is not one you can really trade in & out of because of the FIFO & recapture accounting. It just gets too complicated especially if you have in IRA/ROTH accounts (I do not just in the taxable account).
FWIW, I made buys "in size" before the 10 for 1 reverse split (in August 2020) and got lucky to buy at/near the cycle low.
CVR Partners LP (UAN) had a 1-for-10 reverse split on November 24, 2020. This means that for every 10 shares of UAN owned pre-split, the shareholder now owned 1 share. For example, a 1000 share position pre-split, became a 100 share position following the split.
The reverse split was effective after market close on November 23, 2020. The company announced the reverse split on November 16, 2020.
My average cost is $11.73/share after my sales this week. I see only four Buys remaining in inventory all bought in 2020. All the earlier shares have been flushed out. I may have to reconcile the 2023 K1 shares & those buy dates w/ those in my Schwab account and make necessary adjustments at Schwab. Schwab will sell shares according to FIFO as long as you code those sales for FIFO (I did not do this on my 2023 sales).
It looks like my largest buys were in August 2020 at $9.60/share (have been adjusted for the 10:1 reverse split). That would have been $0.96/share! Sometimes it is Luck not skill that gets you in at/near the bottom. |
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