Hi,
Thanks for trying to answer the question and linking to the general article about how investing in an MLP in an IRA can have the UBTI issue.
However, my question is whether capital gains from trading in an MLP's preferred stock can result in UBTI (in a Roth). The owners of the preferred stock are not owners of the partnership, they are lenders to the partnership. Therefore, capital gains from trading in the preferred stock of an MLP may not be the same (in terms of taxes) as capital gains from trading in the preferred stock of an MLP.
However, I'm not sure.
The article you referenced didn't discuss capital gains from trading in the preferred stock of an MLP. Does anyone have any idea?
Regards
