DO NOT PUT ANY MLP's and maybe REIT's INTO IRA acconts
if you receive more than $1,000 from the regular MLP the dividend is taxable as "UBIT" and your broker has to file Form 990T and you will have to pay taxes. Talk to your financial advisor before you include MLP's into your IRA account. It becomes taxable twice - double taxation.
Please don't try and give tax advice when you don't know what you're talking about. REIT's do not generate UBTI (with a couple of irrelevant exceptions). If you have more than $1,000 of gross business income from MLP's you may be taxed, but not on the distribution (it's not a "dividend"), but the business taxable income allocated. Since many upstream MLP's shelter their income with special deductions for IDC's and depletion, it may not be a serious matter.
well ruby.the dike
since you think you are sooo smart why don't you put a true MLP like EEP - VNR or LINN into your IRA and see what happens at tax time. Since I have to pay taxes on Form 990-T I am trying to worn follow investors. What you think is immaterial as long as I can help one investor not to make the same mistake I made. Good Luck
You would think this is an item the IRS could "fix" by exempting UBIT over $1000 from being an issue when in an IRA/Roth account. So much consternation over an accounting joke.
However, I have no hope the IRS/congress will reform the tax code, except to increase revenues or to personally benefit themselves.