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

To: Madharry who wrote (77251)	2/28/2025 10:05:03 AM
From: Elroy	Respond to of 78525

i wonder whether you have to file k1s on you your ngl preferred. No one has to "file K-1s" for MLP ownership. The MLP gives me a K-1 each year, and I enter the K-1 info into Turbo Tax. It's very similar to entering brokerage 1099 data into Turbo Tax. I am curious what the preferred K-1s will say this year as 2024 was the first year they paid a distribution (they were in arrears for about three years). My hunch is it will say the distributions are basically the same (in terms of taxation) as non-qualified dividends. I don't think they reduce my cost basis in the preferreds. I don't think they contain any federal or state level business income. I think they are going to be classified as something called "payment for use of capital" and taxed like non-qualified div income. But I'll know for sure in a few weeks when the NGL preferred K-1s are sent out...