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Pioneer Southwest Energy Partners L.P. Message Board

  • zbgb952 zbgb952 Mar 14, 2013 11:52 PM Flag

    pse ubti

    I just got my k-1 for pse today. It was in an IRA. It appears that all the ubti. Is this true? uggghhh

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    • No.

      Line 1 (which is net income, not revenue) is all UBTI. So far, you're right.

      But you also get to deduct (for regular tax if your are an individual, but also for UBTI if you're talking about an IRA) Line 13J (intangible drilling costs) and Line 20T1 (cost depletion, forget Lines 20T2 and 20T3). So on my K-1 (not in an IRA, but same theory applies), Line 1 is a profit, Line 13J offsets about 85% of LIne 1, and Line 20T1 puts me in a net loss for 2012. So just from operations, I would not be subject to UBTI on PSE. And probably neither are you.

      Look at the second page of the instruction letter PSE included with the K-1 for an explanation of this. (Or if you got your K-1 in the mail, it's the reverse side of the instruction letter.)

      Hope this helps.


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