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

To: Elroy who wrote (66606)	2/21/2021 6:12:53 PM
From: research1234	1 Recommendation Recommended By E_K_S Respond to of 78861

Google MLP recapture. The accumulated portion of MLP distributions due to depreciation is taxed at ordinary rates upon sale, not capital gains rates. There is a deduction added by the 2017 tax changes that effectively cuts this tax by 20%, which isn’t enough to bring it down to the capital gains rate for people in high tax brackets. MLPs are very good investments if held to death, since it would appear that taxation is avoided on the accumulated distributions due to Mark to market rules. But if they are sold before death, the taxes payable may make an MLP just an average investment or even worse.