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

To: Elroy who wrote (69885)	3/3/2022 2:36:33 PM
From: Paul Senior	Read Replies (2) \| Respond to of 78822

UAN. I just can't seem to grasp the tax implications of UAN, especially in an ira. There's income (positive or negative); there's distributions. There's adjustment to cost basis with the distributions, but that is no matter in an ira, maybe? Otoh, when selling, the distributions are considered part of UBTI ?. I don't know. Maybe the distributions themselves or part of them are considered UBTI each year. I do not know. "Everybody says" don't put mlp's in a non-taxable account. Apparently because you are taxed twice - UBTI? and when withdrawing profits from the ira. But if UAN profit dollars are small in comparison to what the value of the ira is, and if you're old like me, then maybe you don't need to consider double taxation. What about UAN in a Roth, where there's no taxes to be paid at withdrawal. How's UAN handled if it's in there? Al rhetorical stuff - I'm not expecting an answer. Ha. Maybe I wouldn't even understand the answers. So here's my basic plan: I'm going to plan to ride this horse, maybe until I get to two check points: 1. I'll review my k-1 when I get it in a couple of weeks. If I can sort of understand it, and if turbotax can handle it, and if there are no surprising tax consequences, I would like to continue riding, 2: until I either better understand the tax consequences, or I find out how horrible they will be in next year's k-1, or until I realize the great distributions I expect will not happen. Meanwhile, as of today, I do not want the distributions to hit my ira/Roth accounts. Maybe that is a mistake because the income?distribution amount? is already earned and I'll have to pay taxes (UBTI)? on it next year anyway, even if I didn't get those distributions? Anyway, I will go with an offset: I'll buy back at least some of the shares I'm selling today/yesterday in my taxable acount tomorrow morning. The units should (I hope) open lower at the ex-dividend price.