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AmeriGas Partners LP Message Board

  • diphenhydramine diphenhydramine Oct 23, 2005 5:17 PM Flag

    APU in a Roth IRA

    I'm thinking of buying APU for my son's Roth, and as I understand it, the only hitch would be if the unrelated business taxable income (per year or cumulative?) is more than $1,000. With a $4K investment, this doesn't seem likely to happen. Even though the tax advantage of deferred distributions in a taxable account, and the 15% capital gain when you finally sell, is such a good deal, owning the MLP in a Roth doesn't seem like a bad deal, and you avoid the paperwork.
    The yeild is really tempting.

    Also, as a subsidiary of UGI, do they get all their propane from UGI, and is UGI a canny buyer of propane futures? It seems (from APL/UGI investor material) that when propane prices go up, margins go up. The cost per BTU of propane vs. natural gas stands to favor propane this winter, as nat. gas gets more expensive. Granted residential customers can't switch heating fuels easily, but some may add propane heaters. And if the Feds ever manage to get all those displaced by the hurricanes into trailers, it would add to propane demand. Then factor in a cold winter in the Northeast...

    The recent APU price decline seems part of the general energy sector selloff, or do some of you think differently?

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