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

To: Paul Senior who wrote (69884)	3/3/2022 1:46:43 PM
From: Elroy	Read Replies (1) \| Respond to of 78822

Here's something I learned about UAN (an MLP) and taxes. In a regular brokerage account I sold a $80 May UAN put option last November, thinking the unit price would increase as the big distributions approach reality, and the put will expire worthless come this May 2022. My 2021 1099 for that account has a taxable "1250 income" gain. This has something to do with gains on "non-equity" options. Even though I haven't yet sold the put, and it hasn't yet expired, for some reason the end of 2021 year to date gain on the put position is taxable. Go figure. I was expecting to have a taxable gain on the May 2022 expiration, but MLP options receive some different tax treatment. You've been warned!!