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To: E_K_S who wrote (78630)11/30/2025 3:57:29 PM
From: Elroy  Read Replies (1) | Respond to of 78750
 
They both generate a K1 and distributions are made as stated and you generate a tax event when you sell. Most of the distributions are ROC.

I don't think the distribitions are a return of capital.

The distributions are K-1 box 4bc Guaranteed Payments for use of Capital (whatever that is). I think they get treated similar to regular salaried income (ie, no tax benefit).

I'm talking the B and C NGL preferred stock, not the NGL common units.


I think you will owe tax on the NGL distributions at your regular income tax rate. In other words, no good.