Energy Transfer LP (ET) Options

https://www.nasdaq.com/articles/want-cash-ai-boom-top-stock-believes-its-best-position-capitalize-ai-powered-megatrend

Great news. This is our gem that just keeps on growing and keeps on increasing the distributions. I have continued to have all of our distributions automatically reinvested in new unites/shares and will continue that practice.

https://markets.businessinsider.com/news/stocks/energy-transfer-increases-distribution-and-awaits-earnings-1033904476

Energy Transfer Takes a Preliminary Step Toward Adding a Lot More Fuel to Its Growth Engine
https://www.msn.com/en-us/money/companies/energy-transfer-takes-a-preliminary-step-toward-adding-a-lot-more-fuel-to-its-growth-engine/ar-AA1sAhRw?ocid=BingNewsVerp

https://www.fool.com/investing/2024/10/08/why-energy-transfer-is-my-top-investment-for-passi/

https://www.benzinga.com/insights/short-sellers/24/09/40752514/peering-into-energy-transfers-recent-short-interest

https://www.bovnews.com/2024/08/27/energy-transfer-lp-unit-et-stock-unveiling-its-hidden-strengths/

Q2 FINANCAL REPORT: https://finance.yahoo.com/news/energy-transfer-reports-second-quarter-201000859.html

ENERGY TRANSFER ANNOUNCES INCREASE IN QUARTERLY CASH DISTRIBUTION
July 25, 2024 at 4:15 PM EDT

DALLAS--(BUSINESS WIRE)--Jul. 25, 2024-- Energy Transfer LP (NYSE: ET) today announced an increase in its quarterly cash distribution to $0.32 per Energy Transfer common unit ($1.28 on an annualized basis) for the second quarter ended June 30, 2024.

This cash distribution per Energy Transfer common unit will be paid on August 19, 2024 to unitholders of record as of the close of business on August 9, 2024, and is an increase of 3.2 percent as compared to the second quarter of 2023.
https://ir.energytransfer.com/news-releases/news-release-details/energy-transfer-announces-increase-quarterly-cash-distribution-9

https://seekingalpha.com/article/4706506-ai-hungry-for-power-energy-transfer-will-deliver

https://finance.yahoo.com/news/energy-transfer-sunoco-announce-strategic-131000783.html

https://www.msn.com/en-us/money/savingandinvesting/is-energy-transfer-lp-unit-nyseet-the-best-stock-to-buy-for-donald-trump-presidency/ar-BB1pJOq6?ocid=BingNewsVerp

Very positive article and recommendation on buying and holding ET units.

https://seekingalpha.com/news/4122131-mizuhos-top-stock-picks-for-july

Sorry it took so long to answer. Yes, each company will supply one.

Ok thank you. I also own sunoco as well as some mining stocks that are a partnership. Will there be seperate K1s for each stock I assume?

More acquisitions. Some things never change for ET

Texas pipeline giant Energy Transfer to expand network with $3.25 billion acquisition

https://www.msn.com/en-us/money/markets/texas-pipeline-giant-energy-transfer-to-expand-network-with-3-25-billion-acquisition/ar-BB1nepO2?ocid=BingNewsSearch

you get a K-1 instead of a 1099. The distribution is not actually a dividend. Some of it is treated as profit and most of it is return of capital. Some folks think it complicates the tax return, but to me it is very simple. You just enter the numbers from the respective boxes on the tax return just as you would on a 1099. I have held ET for years and dont find it a problem. Some brokerage houses even have it so the form can be imported right into your tax return.

Im new to ET. What is the extra tax form about? What do we get taxed on ? The dividend? Thank you.

ex-div day.

Wow, ET great Q4 leads to bad day. Seems to be true on most of my positions today. Oh well, who can understand the recent markets. I am in positions for the long haul anyway.

Energy Transfer Reports Strong First Quarter 2024 Results

https://finance.yahoo.com/news/energy-transfer-reports-strong-first-201000845.html

Earnings report was positive, and nice to see another increase in the distribution

Nice share price action and upward momentum here today. ET opened the door and walked right on in.
Knocking on 16s door!

ET is the holding that just keeps on giving.......

This Billionaire Is Selling This Magnificent Dividend Stock: Here Are 3 Other Higher-Yielding Dividend Stocks He Likes Instead
https://www.fool.com/investing/2024/05/05/this-billionaire-is-selling-this-magnificent-divid/

Latest presentation: https://ir.energytransfer.com/static-files/71fede3c-83ea-465b-84ca-3e08a79fa786

Sunoco LP and NuStar Energy L.P. Announce Expiration of Hart-Scott-Rodino Act Waiting Period
April 09 2024 - 07:00AM
PR Newswire (US) https://ih.advfn.com/stock-market/NYSE/energy-transfer-ET/stock-news/93624014/sunoco-lp-and-nustar-energy-l-p-announce-expirati

Yes we are. And even at this share price the distribution yield is still over 8%.

Knocking on 16s door!

Yielding 8.2%. Should be around 7%. Share price still has room to move up… $17-$18 by year end.

And it just keeps going. Nice to see.

New 52-week highs for ET here this am.

Schwab sent this--
UBTI and Form 990-T: FAQs
Overview
What is UBTI?
Unrelated Business Taxable Income (UBTI) is income from a trade or business regularly generated by an exempt
organization that is not substantially related to the organization’s exempt purpose. The tax-exempt purpose of an IRA
is to provide income for retirement. Investment income earned by an IRA is tax deferred for a traditional IRA, and tax
exempt for a Roth if it’s a qualified distribution. However, if the IRA invests in a publicly traded partnership (PTP),
master limited partnership (MLP), limited partnership (LP), private equity partnerships (PEP), hedge fund partnerships,
or limited liability companies (LLC), it becomes a partner in an active business. If the partnership passes on profits
from its business, or investment income secured by debt, such income earned by the IRA may be treated as UBTI and
may be subject to tax.
What is UDFI? What is an example of UDFI?
Another way an MLP can generate UBTI is if it borrows money to purchase income-producing assets in support of its
primary business. This income, referred to as Unrelated Debt-Financed Income (UDFI), represents a subset of UBTI.
UDFI occurs when a partnership in which an IRA has an ownership interest borrows money (also known as using
leverage or debt financing). The net profits attributable to the leveraged portion are considered UDFI and are subject
to tax.
Example one: A real estate property is purchased with 75% IRA funds and 25% borrowed money. The borrowed
money is considered “unrelated” to the IRA because it is not taken from the IRA funds. A quarter of the total profit
earned is subject to UDFI tax.
Example two: An IRA invests in an MLP. That MLP then purchases $100,000 of common stock that pays $10,000 in
dividends. Of the $100,000 investment, $50,000 was borrowed by the MLP.
• Because portfolio income passed through an MLP is excluded from UBTI, the dividends distributed by the
MLP (the $10,000) are non-taxable to the IRA.
• However, since the MLP borrowed 50% of the common-stock investment, 50% of the dividends the MLP
distributes represent UDFI and will be taxed as UBTI.
When did UBTI requirements go into effect?
UBTI rules were created by Congress in 1950 and started applying to IRAs upon their creation in 1975. In tax year
1997, the IRS determined that firms like Schwab (custodians of IRA accounts) are required to prepare and file Form
990-T if the gross income of an IRA meets the $1,000 threshold. Custodians must then remit any tax due. In its
capacity as custodian, Schwab relied on clients to collect and send Schedule K-1 forms to Schwab.
What Is Form 990-T?
Form 990-T is used to report UBTI income generated in a tax-deferred account. An exempt organization that has
$1,000 or more of gross income from an unrelated business must file Form 990-T. Schwab examines your Schedule
K-1s to determine whether a Form 990-T is required, and files it for you if needed.
What is Schedule K-1?
Schedule K-1 (IRS Form 1065) is a tax document issued for a partnership’s investors, reporting each partner’s share
of the partnership’s earnings, losses, deductions, and credits. It also reports the UBTI earned in a tax-exempt account.
This document is used to prepare and produce Form 990-T.
Most partnerships use a vendor to create Schedule K-1, and the vendors share that data with Schwab. In some
instances, such as when partnerships do not use the vendors or the investments are classified as alternative
investments, the account holder must forward the Schedule K-1 to Schwab.
2
Where can I find UBTI and associated information?
UBTI and related information is provided to Schwab by the partnerships. Schwab does not generate or calculate
taxable information on the Schedule K-1. If there is a discrepancy on your Schedule K-1, contact the partnership
directly.
You can also find information related to UBTI on several IRS forms and schedules:
• UBTI: Line 20, code V of Schedule K-1*
• Ordinary gains: Sales Schedule (attached to Schedule K-1)
• Capital gains due to debt-financed activities: Sales Schedule and Form 8949 (included in Form 990-T)
*Note: Although most Schedule K-1s list the total UBTI on line 20 code V, additional UBTI may also be listed on the
entity’s statements or tax schedules, or in the footnotes of these documents.
This is an IRA. Why do I have to pay taxes?
Certain regulations dictate the circumstances under which taxes may be owed and/or forms must be filed.
• Section 511 of the Internal Revenue Code (IRC) states that even though an entity is recognized as tax-
exempt, it still may be subject to a UBTI tax.
• Section 408(e)(1) makes these provisions applicable to IRAs.
• Treasury Regulation 1.6012-3(a)(5) stipulates that fiduciaries of all IRA types that have $1,000 or more of
unrelated trade or business gross income must file Form 990-T.
Which account types are in scope for Form 990-T filing?
According to IRS Publication 598, the following account types are subject to tax on UBTI:
• Individual retirement arrangements (IRAs), including traditional IRAs, Roth IRAs, Simplified Employee
Pensions (SEP-IRAs), and Savings Incentive Match Plans for Employees (SIMPLE IRAs).
• Keogh accounts (retirement plans for self-employed) and i401K accounts.
• Coverdell Educational Savings Accounts (ESAs) described in IRC Section 530.
What is the deadline to file Form 990-T? Are extensions possible?
The deadline for brokers to file Form 990-T is April 15, or October 15 with an extension.
• Schwab will request an IRS extension of time to file for all IRAs that have a high probability of requiring a
Form 990-T.
• An extension will not avoid penalties and interest that may be included in your calculations due to non-
payment of any tax due in full by the due date of the return. To avoid any additional penalties and interest
calculations, estimated payments would be required. The deadline to pay estimated taxes is April 15.
Are personal tax filing extensions attached to 990-T filing extensions?
No. The filing of Form 990-T is separate from the client’s personal tax filing. The extension filed is ONLY applicable to
the 990-T filing.
Can I get a copy of the extension filed on my behalf?
Schwab will not be sending copies of extensions filed to clients.
Who generates my Schedule K-1s? How can I view them?
For alternative investments (AIs), Schedule K-1 should be provided by the partnership directly to you. For publicly
traded partnerships (PTPs), you can generally find this information on the partnership’s website or from their form
vendor. Two commonly used form vendors are:
• Tax Package Support: https://www.taxpackagesupport.com
• Partner Data Link: https://www.partnerdatalink.com
To view your form(s), you’ll need to register and log in. You’ll need to provide your name, tax identification number,
and your current share quantity.
3
Schwab is not responsible for the content of these websites.
Is there anything I need to do?
If you hold a publicly traded partnership whose Schedule K-1 is generated by Tax Package Support or Partner Data
Link, you don’t need to submit anything to Schwab. Schwab will determine whether a Form 990-T filing is needed.
If you hold an alternative investment or a partnership that doesn’t use Tax Package Support or Partner Data Link to
produce their Schedule K-1s, the alternative investment or partnership will send the Schedule K-1 to you and you’ll
need to send a copy, including any supplemental pages, to Schwab to be analyzed and included for potential Form
990-T filing.
If tax is due, please ensure you have funds available in the account that holds the assets that generated UBTI, so that
Schwab may make the payment on your behalf. If sufficient funds are not available in your account, Schwab will file
your Form 990-T without payment, and your account may be subject to penalties and interest from the IRS.
Where do I send the Schedule K-1 that I received?
If you have received a Schedule K-1 for an alternative investment held in your tax-deferred account, Schwab will need
a copy as soon as possible for analysis for a Form 990-T filing.
You may upload tax documents securely via Schwab.com Message Center or send them by mail:
Regular mail
Charles Schwab & Co., Inc.
Client Tax Reporting
P.O. Pox 982006
El Paso, TX 79998-2606
Overnight mail
Charles Schwab & Co., Inc.
Client Tax Reporting
1945 Northwestern Drive
El Paso, TX 79912-1108
Will I have to do this again next year? Can I avoid having to file Form 990-Ts?
If you’ve invested in an MLP or an LP, filing a Form 990-T may be necessary. The likelihood that a Form 990-T will be
required is increased when partnership shares are sold and when the partnership is affected by a corporate action or
bankruptcy event. IRAs that do not hold MLPs, LPs, or other flow-through entities generally do not have a Form 990-T
requirement.
Can I prepare the Form 990-T instead of having Schwab do it?
No. As custodian of your IRA, Schwab is required to file Form 990-T when tax is due and must remit payment from
your account that held the asset(s) that generated UBTI. Schwab’s name and address are used on the filing as well as
the payment.
Ex: Schwab Custodian Inc. FBO [Your Name]. Schwab remits payment on behalf of your IRA to the IRS through the
Electronic Federal Tax Payment System (EFTPS).
Tax Return Filing
Do I file Form 990-T or does Schwab?
Schwab will file Form 990-T on your behalf. In addition, we will send a copy to you for your records. If you see a
discrepancy, please contact us for further review.
Will Schwab file a Form 990-T to report UBTI losses?
Schwab will no longer file Form 990-T for losses; however, we will track losses to offset future gains.
Is Form 990-T filed under my Social Security number?
No. The IRA, not the IRA owner, owes the tax. Form 990-T will be filed under an Employer Identification Number (EIN)
belonging to the IRA. The IRA is a separate taxpayer from the IRA owner.

This one is acting like a yo-yo right now.

https://seekingalpha.com/article/4662908-energy-transfer-continuing-to-scale-up-as-an-energy-giant

https://finance.yahoo.com/news/energy-transfer-top-midstream-pick-190151419.html?guccounter=1&guce_referrer=aHR0cHM6Ly93d3cuYmluZy5jb20v&guce_referrer_sig=AQAAAJpFR6kHoLec64iXxzbTX6mgV61s7X7ZwmB0iKRtTuZXGq8cvUNq8ygodvKxEveHSqRRyjqgc7h62c2MoSKLq2Bats39_hBi6ayb5pCvF5H4CgG103VHzxYjMviHARDfKCoQBKECKAqPVBGhP6Mzbxzgg3nc5uEj7W4yoZ2qX1l0

"About Form 990-T, Exempt Organization Business Income Tax Return (and ...
https://www.irs.gov/forms-pubs/about-form-990-t

Form 990-T is a tax form used by exempt organizations to report certain income and tax liability1. Exempt organizations are those that are not subject to federal income tax, such as charities, religious groups, or educational institutions. Form 990-T is required if the exempt organization has income from a trade or business that is not related to its exempt purpose, such as rental income, advertising income, or investment income1. Form 990-T is also used by holders of self-directed IRA or HSA accounts to report their retirement account assets2."

You tell me and we will both know. the advisor on the accounts where I hold large positions in ET indicates it is due to some rules change a number of years ago. but my ET holdings have never required the issuance or filing of that form. I do not believe it applies to "dividends" but rather other items inthe K-1 and most often only upon a profitable sale, etc. And, remember that ET does not technically issue dividends, but rather capital distributions.

990T? 990-T, Exempt Organization Business Income Tax Return (and proxy tax under section 6033(e)) Why would this be applicable to ET Dividends?

Schwabe is doing this at the behest of the govt for some reason. My financial advisor went round and round with them over it to no avail.
The kicker was that ET sent out the forms late---after I had already files my taxes and wasnt notified until around 3 months ago so I had to pay interest and penalties.

nwtf: I hold substantial positions in ET in 2 different tax-deferred retirement accounts, and I frequently get that form letter which states that my account and K-1 (Form 1065) may be examined for a possible need to issue me a 990-T, and I have heard of some very rare situations when a 990-T was issued within a tax-deferred IRA, but I always receive the follow-up letter saying that there was nothing in my situation which warranted issuance of the 990-T.

I meant Letter of Intent, to be clear. Not memorandum

Exactly so! 10/10

What I think you mean is that it means nothing definitive. Of course it means "something" or at least a good possibility of "something". These are both serious companies. Not pinkies that announce agreements to drum up share sales.

True, but still appears to be a very promising transaction for our gem of an investment here.

"Non-binding" and "letters of memorandum" mean absolutely nothing. The only thing that means anything is a contract.

https://finance.yahoo.com/news/energy-transfer-inks-non-binding-134305089.html
Energy Transfer inks non-binding deal to supply crude to France's TotalEnergies

Its had to do with other business expenses and gains for the sale of Business Property. What that is I dont know. My financial advisor ran in to it with another client on a different issue but it Schwab
was the broker on it also. Plus you cant get around it as this all govt activated, Form 990-T Exempt organization Business income tax.
So because this happened in 2022 with out my knowledge and with ET filing these late I got hit with penalties and interest.



So question-----anyone else here get nailed with this for 2022?