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 : Value Investing -- Ignore unavailable to you. Want to Upgrade?

To: Elroy who wrote (72519)	3/11/2023 1:45:11 PM
From: E_K_S	Read Replies (1) \| Respond to of 78817

Re: UAN K1 2021 vs 2022 A few takeaways: 1) 2022 had significant increase in Taxable income vs a loss in 2021 2) Gross Receipts +70% 2021 vs 2022 3) Gross Income +76% 2021 vs 2022 4) Distributions + 815% 2021 vs 2022 a HUGE Increase !! For 2022 Ending Nonrecourse Account -10% (vs 2021) Ending Capital Account -23% (vs 2021) Delta of (Ending Nonrecourse Account - Ending Capital Account) -3.7% (typically this is much larger) and is still a large positive number. ----------------------------------------------------------- As long as the (Ending Nonrecourse Account + the Ending Capital Account) is > $0.00 (w/ units held in a taxable account) then no additional monies need to be added to the negative capital account balance. A brief estimate of 2023 Distributions the account is on track to exceed 2022 distributions 2022 distribution = $23.97/share 2023 is $10.50/share for Q1 FWIW using my capital account net totals, as long as 2023 Distributions are < $33/share, I will not need to fund the account. Your options include (a) add higher cost shares, (b) reduce shares (c) close out all your shares and buy back establishing a new cost basis or (d) deposit money at the MLP to bring your net capital account back above $0.00. In a taxable Account: Any sale triggers a Gain subject to Recapture As Ordinary Income. You can do Nothing and postpone those gains BUT your NET Capital Account Totals must be greater than $0.00 at the end of the year. ------------------------------------------------------------- I think this is the way you make sense out of these numbers, I am no K1 and/or MLP tax expert but simply trying to make sense out of 2022 vs 2021 results. It gets way too complicated if you buy units in multiple accounts (linked to the same SSN), a tax deferred account or BOTH. I believe in a tax deferred account you simply send a copy of your K1 to the broker administrator and they will determine if you exceed UBI by $1K/account. If so, you may have to make up the difference and not sure if it must be tax deferred cash (from same account) but I would think so. That is why I keep no MLPs in the ROTH and/or IRA accounts. DCP is the only one I have left to reduce and/or eliminate and the UBI is well below the allowed limit.