are all about? I just received a set of K-1's from FIG claiming that I am a partner and I have to pay taxes on income that was never distributed to me by FIG. FIG claims they can do this because they are a publicly traded partnership and they do not pay taxes, their shareholder partners do. Anyone?
I dont think thats true. People here are not qualified to give anyone tax advice..soim not sure why they are :)
There's a thing called UBTI that applies even to IRAs wehn it comes to companies structured like FIG..talk to a CPA.
Well I received one last month with nothing on it. I owned FIG shares for a short period in summer 2009. I felt I was receiving this K-1 as when dealing with futures contracts you must "mark to market" at the end of every year. Example: If you own shares of a commodity etf which deals in futures and you hold them for more than a year, you would receive a K-1 reporting your unrealized profit/loss of the futures on 12/31 (minus your cost basis from 12/31 of the previous year). The IRS just loves to make things as complicated as possible
throw all that in...and why oh why would anyone be wasting their time on this pos stock...lol...who cares if it goes to 7 or even 10..instead of most stocks that pay to have you wait until you profit from the stock..this stock charges you to wait...whatever emotional attachment people have to this stock should seek a therapist to detatch because it just get worse and worse to own it...now we know why Cramer steers everyone clear..it really is laughable. That's sham for the explanation
As a shareholder of FIG, you are considered a member of the LLC, not just a shareholder. Generally, distributions (dividends) are paid to the members (shareholders) to offset the tax liabilities incurred, but that did not happen in 2009 because of their cash constraints. And, since 2009 was a profitable year, there are taxes due. Someone has to pay uncle sam. You cant invest blindly in something assuming its a regular stock, FIG is not. Neither is KFN..some people will learn the hard way unfortunately. Even if you didnt sell shares in 2009 and just held, you still may have tax liability.