Hello,
I know that capital gains on a Master Limited Partnership (MLP) in a Roth account may result in UBTI income. In a Roth this can result in significant tax obligations if the UBTI amount is great than $1,000.
Does anyone know whether the same thing is true for capital gains from trading preferred stock of an MLP in a Roth? I own some preferred stock of an MLP in my Roth, and it has appreciated significantly. If I sell it, will the capital gain from selling preferred stock of an MLP perhaps be UBTI?
If anyone knows the answer I would appreciate it!
Regards
