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

To: E_K_S who wrote (78632)	11/30/2025 8:26:31 PM
From: Elroy	Read Replies (1) \| Respond to of 78749

It looks like 10% of the distributions is taxed as ordinary income and 90% ROC so tax deferred until you sell. Where do you get this idea that some of the NGL B distribution is return of capital? I'm pretty sure none of it is return of capital, and all of it is treated as ordinary income. Your cost basis in the NGL preferreds will not change from what it is on the day you buy it. I'm curious why you think otherwise. -- I have my NGL B K-1 from last year. The entire thing is blank other than Box 4b and 4c which are labelled "Guaranteed Payments for use of Capital", and the amount in that box is identical to the dividends received from NGL-B during the year.