Value Investing Message Board

STOCKTALK

We've detected that you're using an ad content blocking browser plug-in or feature. Ads provide a critical source of revenue to the continued operation of Silicon Investor. We ask that you disable ad blocking while on Silicon Investor in the best interests of our community. If you are not using an ad blocker but are still receiving this message, make sure your browser's tracking protection is set to the 'standard' level.

Strategies & Market Trends : Value Investing

Public Reply Prvt Reply Mark as Last Read File

Previous 10 Next 10 Previous Next

To: Paul Senior who wrote (78193)	10/6/2025 4:34:16 PM
From: Elroy	Read Replies (2) of 78464

I've not had enjoyable experiences with MLP's at tax time Yes, but the NGL preferreds are likely to be the least painful MLPs out there. The only negative issue with them and UBTI in tax advantaged accounts is that the capital gain from a sale may be classified as UBTI, and I'm not even sure about that. There's nothing (I think) else about them that would be painful in a tax advantaged account. So if you hold NGL-B in a tax advantaged account for a year, buy it at $23, collected $2.70 in dividends, and then sell it for $24, you may owe taxes on $1.00 of UBTI income (or may not, we're not sure), which would be less than 37 cents. You make $3.70 ($2.70 in distributions and $1.00 in cap gains) and at most pay 37 cents. Not bad for a $23 investment.

Report TOU Violation

Share This Post

Public Reply Prvt Reply Mark as Last Read File

Previous 10 Next 10 Previous Next