I bought some ETP for a buddy in an normal brokerage account:
In 2011 I bought units:
50 @ 48.83
25 @ 45.67
The cash distribution for 2011 was 111.72$
How does the taxes work for the distribution gain in 2011?
If I wanted to sell today 75 unts at 48$ how does it work with taxes?
How is this different than a normal stock? I am not clear on the cost basis and how it gets to zero? I had read a lot of the posts and am getting better and understanding the MLP world, but I am definitely not there yet.
Interesting discussion. I have another partnership, Suburban Propane in my IRA. My SS is not on the K1. My current plans are to ignore the K1. Box 20 has three numbers A=7
V=-387 Y=955. Sorry but I do not have any idea what these numbers mean. These are small numbers none of which is over the $1,000 some folks mention. I hope to be OK.
The owner of the IRA is required to have their Federal ID # on the account. It cannot be the number of the custodian.
If the IRA is held by a trust, the ID number can be that of the trust, but the trust is then responsible for timely forwarding of any K-1s to the custodian.
Bottom line is if it the owner's responsibility to forward the K-1s whether it is the owner, a trust, or a fiduciary handling an estate. Tax man gets his $$ any way you cut it.
How in the heck can you have an IRA and not have your SS # on the account? Whose number is there? Someone must own the IRA assets?
If the account is yours it is required by law to have your SS # on it! You can quote anything you want about who is responsible.
If (note the ETP has historically had negative UBTI) ETP had positive UBTI along with the other MLPs in your IRA the actual rule is YOU are responsible for sending the K-1s to your trustee. They then will file the 990T and can bill you for filing. Your IRA pays the tax (if any).
The way around this is to file anyway and preserve negative numbers to carry forward to the following years.
Simply because a company fails to put your SS or TIN number on a document does not absolve you of the tax liability.
I have been down a different road, and found out.
Never trust what you hear on the phone from a CS, always get it in writing.
You miss the point. Audit or no audit. If the company issue you a K-1 and your SS number is not in box E of Part II, you do not owe UBIT. Call the IRS to confirm, but I've been down this road before. 800 829-1040.
Good luck with that on an audit.
Missing Taxpayer Identifying Number. The penalty is $50 for failure to put a dependent's social security number on your individual return, failure to provide your identification number to another person, or if you're a business, failing to include your employer identification number on an information return.
It's a moot point anyway, the UBIT this year was negative.