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

To: Paul Senior who wrote (78440)	11/3/2025 3:03:29 PM
From: Elroy	Respond to of 78774

I think a good strategy for UAN is hold it in a regular account and never sell. It seems likely to pay 10%+ yield forever. If your cost basis gets to zero, buy some more. That adds to your cost basis (so distributions remain tax free) and if your cost basis got to zero, it was a winner. Owning in a tax advantaged account is no good I think due to UBTI, especially if you sell after holding for a long time. I've got a bunch of UAN and EPD, both MLPs. I plan to just hold on and collect the distributions forever. Turbo Tax can handle that.

To: Paul Senior who wrote (78440)	11/3/2025 3:07:31 PM
From: E_K_S	Read Replies (2) \| Respond to of 78774

Re: UAN My basis now at $9.64/share and goes lower on every div distribution. What happens is there is depreciation re-capture in a taxable account. Not adding or selling and will see where my cost basis is next year. When I sell I have a "HUGE" depreciation recapture taxed as ordinary income. Not sure what happens in held in an IRA and/or ROTH and not interested especially in a UBIT charge . . Recapture depreciation reported on a K-1 would be considered ordinary income and subject to UBIT if received in a tax-exempt account like an IRA or pension. Thus for tax reporting on the K-1 regarding recapture depreciation, it is UBIT (the tax) on UBTI (the income) that applies. ----------------------------------------------------- Anybody notice LUMN +9.31% back to a two year high. Never thought this would come back after the dividend was eliminated. The rumor is it is an AI Data Center play now w/ private networking of cloud services. Nothing new