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Strategies & Market Trends : Value Investing -- Ignore unavailable to you. Want to Upgrade?

To: Elroy who wrote (66600)	2/21/2021 11:06:16 AM
From: E_K_S	Respond to of 78817

Remember you still pay either (1) short term capital gain or (2) long term capital gain on these distributions WHEN YOU SELL the units. The positive is you defer those taxes and if you die and pass your units to your estate/beneficiaries, current law says your cost basis goes back to current unit price and NO Tax Liability is due to your heirs. You probably do not want to Own UAN in a tax deferred account like IRA because of the possibility of excess UBTI. The issue is that when you place a MLP inside an IRA, you don't own the MLP. Your IRA is considered the owner. It's the limited partner in that MLP and subject to all the goodies described on the K-1. The IRS allows IRAs to have up to $1,000 worth of UBTI in them. FWIW, I still own shares from 2015 and w/ no distributions in 2017 or 2018, my cost basis is still pretty high. Therefore, I have little to worry about my basis reaching $0.00. If you are old and are looking for a way to defer capital gain taxes you can do some estate planning using MLPs until such tax law is changed. -------------------------------------------------------------------- No plans to add to my UAN position as my current position is pretty large compared to the other companies in my AG basket. Based on DE's earnings and forecast would like to start positions in AGCO and/or DE. In hindsight, probably would have been best to sell all the UAN in 2017/2018 and move those proceeds into DE and AGCO. EKS

To: Elroy who wrote (66600)	2/21/2021 7:41:45 PM
From: Area51	1 Recommendation Recommended By E_K_S Read Replies (1) \| Respond to of 78817

<<I'm not sure what I'm doing wrong, because the numbers seem too good to be true. Who cares? The stock should probably be trading around $60 while we wait to see what's going to happen, but it's not. It's $23.>> Well if the UAN price stayed at $250 a ton forevermore CVR partners could be worth $60 plus. But possibly the market expects the price to come down to $160 by the fall, or at least futures prices for the fall are still around $160/ton. So maybe we should temper our enthusiasm a little? cmegroup.com