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

To: Rarebird who wrote (73023)	7/4/2023 10:01:06 AM
From: E_K_S	2 Recommendations Recommended By CusterInvestor roguedolphin Read Replies (1) \| Respond to of 78817

Good to know. I also had my TD Ameritrade account moved to Schwab and there was no problem. I s/d feel lucky w/ DCP as it always paid a good distribution and was eventually bought out by PSX for a very nice gain. I would send the K1's to Schwab and they completed the forms for me (no charge). --------------------------------------------------------- I have a basket of pipeline companies and great dividend payers. They are all 'C' Corps so no issue with K1s. KMI, WMB, ENB & PBA . These are in the taxable account and after making a low in 2020, have started to rally. Could see all time highs in the next 2-3 years from this sector as it lagged the rest of the market. The dividend streams are quite good w/ WMB (5.5% yield); KMI (6.56% yield), ENB (7.08% yield) & PBA (6.26% yield). I do own a small position in EPD & ET both MLPs held in the taxable account. I have been slowly building new positions in other dividend payers which have also lagged in this rally; IP (5.82% yield), DOW (5.3% yield), UGI (5.5% yield) and started to dip my toe into some of the chemical cyclical companies; HUN (3.5% yield), KRO (8.7% yield) & TROX (4% yield). The chemical processing companies is a sector that has also lagged in this rally and are relatively inexpensive w/ PE's that range from 8x -12x. I do think we could see a continued broadening of the market especially in the middle/bottom of the $SPX companies which have under performed the top 10% of the $SPX. FANG stocks have done well but are very expensive especially AAPL at PE 33x. --------------------------------------------------------- Still sitting w/ about 20% cash and have it parked in the Vanguard Treasury Fund w/ a 7-day average yield over 5%.

To: Rarebird who wrote (73023)	7/4/2023 12:41:59 PM
From: Paul Senior	1 Recommendation Recommended By E_K_S Read Replies (1) \| Respond to of 78817

UBTI. Yes, it's profit plus income. My opinion based on my experiences with UAN -- I'm no tax expert. A recap: What you get with mlp's are distributions. What your UBTI (unrelated business taxable income) is is the income, the distributable amount after subtracting depreciation, etc. With pipeline mlp's they are always doing something with their pipelines and have a lot of depreciation they/you can get from that. Which means for pipeline mlp's you have distributions but very little or no reportable income and thus no or very little UBTI for shares (properly called units) held in tax-advantaged fund. There's a $1000 UBTI thresheld before you (your trustee,the broker) has to pay the tax out of your account. About "profit". If you sell any of your shares (units) of an mlp in your tax-advantaged fund, that amount is subject ot UBTI. Profit is sales price less adjusted cost of purchase. That adjusted purchase price depends on the amount of depreciation expense that you got the benefit from, and now is recaptured by lowering your purchase price, thus increasing your gain. Assuming you still show a gain after doing this. There may be other aspects to determining "profit" as well - I'm not sure. Where I'm still lacking confidence and knowledge, is with the pipeline mlp's in my Roth/ira where I've had distributions over several years (no UBTI or negative UBTI) but no sales of units. If my adjusted cost basis eventually falls to zero because of all the distributions (depreciation,et.al.) I've received, must I or trustee become aware of this somehow and then start categorizing further distributions as income (which is UBTI)? Not an issue for me now, but maybe in the future if I keep holding the partnership units.