Question 1: I got a K-1 for KMP that I own in a Roth IRA. I'm told that even in an IRA, I need to have the custodian (TDA) pay taxes on UBTI (Unrelated Business Taxable Income)if it's over $1K. Mine says "-1,206". Is that over $1K or is it only over $1K if it's a positive number and the negative is indicating a loss that I wouldn't pay taxes against?
Question 2: Another thread said that a person would only owe taxes in an IRA if it was over $1K the year the position was sold (adding up all the UBTIs for the period KMP was owned). My assumption it would be for the tax year you had UBTI over $1K and not when you sold the position.
Question 3: If I have more than one K-1 for an IRA account, are they cumulative?
Question 4: If I have more than one K-1 for IRAs between my wife and I, are they cumulative?
You could avoid all of that trouble by buying KMR instead. It has no K-1 and pays a higher percent distribution that comes in the form of shares. It's the same company, less hassle, available for a discount to KMP.