Replies to post #243 on InfraCap MLP ETF (AMZA)

[jugs]

While I'm not a tax-obsessed investor, I do know CPAs add a fee for processing k1s.

My wife's IRAs and mine contain mostly MLPs. I manage them. We enjoy a passive income amounting to $69,000 annually plus income via trades with appreciation.
There's also income from social security.

Our strong income has me unconcerned about CPA fees and taxes.

I can tell you that MLP income is not taxable as it represents a return of capital. Also, gains coming from MLP sales are taxed at just a 15% rate if units are held under a year and 10% if held a full year.

We live wonderfully free of financial threat and trust our CPS will take care of the legwork. MLPs provide the backbone for our income program. Accounting fees and taxes have their place but living happily cones first.

Best of luck to you!

[Uranium]

AMZA does not issue a K-1 so not a problem in a tax-deferred account. Some MLP’s that have units of ownership, not common shares, and issue K-1’s can have incomes that are problematic for tax-deferred accounts. Ask your broker

[RyGuy]

While I am not a tax advisor. I have completed my own taxes for a number of years using common tax software like TaxAct.

My IRA has had distributions from MLP's. My K-1's I receive from my unit holdings in MLP's so far have all been treated the same. As the K-1 has my IRA listed as the recipient of the distributions.

Here is what TaxAct software has said about the distributions reported to me on schedule K-1.

If Part II, Item I of your Schedule K-1 indicates that the K-1 was issued to the IRA and not to you as an individual, you should not report the information on your individual income tax return. Federal tax law requires that a Schedule K-1 be sent to every unitholder (individual or business). If your IRA held units of the entity, you will receive a K-1. You will report income on your return when you take distributions from the IRA.