How much I have to pay tax with 1000 shares of ulty?

The tax liability for 1000 shares of ULTY can vary significantly due to its unique dividend structure and tax characteristics. Here's a breakdown:

1. **Dividend Yield and Amount**: ULTY has a trailing 12-month dividend yield of 124.7% as of August 20, 2025. This high yield suggests that the ETF distributes a substantial amount of capital rather than just ordinary income.
2. **Tax Treatment of ULTY**: ULTY's tax treatment is complex and differs from traditional dividend-paying stocks or ETFs:
- **100% ROC**: ULTY is reported as 100% Return of Capital (ROC), which means that prior to returning capital to investors, the ETF distributes all its income as ROC, effectively deferring taxes on the dividend component.
- **No Immediate Tax Liability**: Investors do not pay taxes on the ROC until they sell the shares and realize a gain. At that point, any gains are taxed at ordinary income rates.
3. **Investor Considerations**: For an investor holding 1000 shares of ULTY:
- **No Upfront Tax**: There is no immediate tax liability on the dividend component when the shares are held. However, if the investor sells the shares, any gain from the sale is taxed at ordinary income rates.
- **Strategic Selling**: Investors might consider strategically selling ULTY shares after a full return on investment has been realized, as this would trigger only the capital gains tax rate, which is typically lower than ordinary income rates.

In conclusion, while there is no immediate tax liability for holding ULTY shares, investors should be aware of the potential tax implications upon selling the shares or realizing gains from the ETF. The tax treatment of ULTY is more akin to a capital event rather than a traditional dividend income stream.