Silicon Investor (SI) -- The First Internet Community

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 : Dividend investing for retirement -- Ignore unavailable to you. Want to Upgrade?

To: Elroy who wrote (20123)	6/25/2014 8:01:04 PM
From: the traveler	Read Replies (1) \| Respond to of 34328

Well actually its a little more involved than that. Its true there are no UBTI issues outside of tax sheltered accounts. However, the distributions are not treated like dividends from a plain vanilla corporation. Read all about it! dividenddetective.com Better yet just google "tax treatment of mlps".

To: Elroy who wrote (20123)	6/26/2014 11:46:40 AM
From: mopgcw	Respond to of 34328

So...if a US person holds an MLP in a regular brokerage account the distributions are the same as regular dividends? There is no special tax treatment of the distributions? I didn't know that, I thought there was some issue if you earn more than $1,000 of UBTI then strange things occur in your tax reporting. As I noted earlier, you are confusing two different issues. the distribution is not the same as a regular dividend and is not treated the same. Each MLP has a different ratio of the distribution being treated as dividend and a certain percentage as a return of capital. the K-1 will note this automatically. you can also look it up for your MLPs For a taxable account, the UBTI is reported on your K-1 and flows through your tax return along with everything else on the k-1 and there is no strange thing occurring in your tax reporting. If you hold the MLP in an IRA, there is more complication when there is UBTI. This can cause the account to be taxable. There is a $1,000 deductible to offset the UBTI. whether you choose to ignore the reporting requirements is up to you. one of the most helpful sites: naptp.org