Announcement

Collapse
No announcement yet.

Swing Trading a PTP

Collapse
X
 
  • Filter
  • Time
  • Show
Clear All
new posts

    Swing Trading a PTP

    I have a client who is a very successful swing trader. That is, he profits from consistently knowing when a given stock is going to go up or down a little bit. He is contemplating a series of buys sells shorts and covers with a stock and then he realized it is a publicly traded partnership and he checked with me on the tax consequences. Does anyone know if a PTP differs from a garden variety stock in this regard?

    #2
    Ptp:

    Originally posted by erchess View Post
    I have a client who is a very successful swing trader. That is, he profits from consistently knowing when a given stock is going to go up or down a little bit. He is contemplating a series of buys sells shorts and covers with a stock and then he realized it is a publicly traded partnership and he checked with me on the tax consequences. Does anyone know if a PTP differs from a garden variety stock in this regard?
    The only difference I can think of is that he would get a K-1 rather than a 1099DIV, and would probably need to report any K-1 income and expenses in the appropriate places. If he bought and sold it quickly enough, he might have no K-1 income and would only have a gain or loss on the sale.

    Comment


      #3
      Originally posted by taxxcpa View Post
      ...If he bought and sold it quickly enough, he might have no K-1 income...
      This is only a question, since I am not sure whether I know, but aren't some of partnership K-1's generated with income items allocated to partners based upon the periods (days) of ownership of partnership interest? Or is that the same with a publicly traded partnership?

      Comment


        #4
        Allocated ownership

        Originally posted by OtisMozzetti View Post
        This is only a question, since I am not sure whether I know, but aren't some of partnership K-1's generated with income items allocated to partners based upon the periods (days) of ownership of partnership interest? Or is that the same with a publicly traded partnership?
        That could be. But if it is publicly traded, it would be a very difficult task for the partnership to allocate the ownership and K-1 income to someone who held 100 shares for one or two days when there are a million owners. I've owned PTPs in my IRA, but don't remember if the K-1 considered anything except whether I owned it at year-end.

        Recently I bough a lot of MLP-type investments in my IRA and will see if they allocate it for the period owned when I get my K-1s.

        Comment


          #5
          I

          think they always give an attached schedule that shows changes in ownership quanities. they do not show gain or loss that is up to the preparer. Basis especially in oil/gas is up to the preparer to figure, it will never match the K-1 summary.

          Comment

          Working...
          X