you are loosing the huge... line 1 loss by having in an IRA, if you can sell in IRA take profit and move to reg a/c, sell stocks that you are loosing on or not and want to keep and re-buy in IRA.
You are getting bad information from someone who most likely doesn't know the difference between a Roth IRA and a tax deferred IRA. Just spend the 40 bucks and buy some tax software. You will sleep much better
Absolutely NOT. If you look at the second page where the various MLP holdings are list you have a positive number on line 20V for SXL. If the total of all the positive UBTI numbers is $1000 then your IRA owes taxes. You need to give both your broker and people here ALL the information. I also think maybe the rep you spoke to is not completely informed.
Turbo Tax says to not enter the information because you are doing a personal return and not filing a 990T for your IRA. RLP is correct on his comment. I also agree with filing a 990T anyway to preserve a negative UBTI number. Remember ETP is going to generate UBTI in 2013 from the retail portion of SUN gas stations.
Last, the taxation of IRA for UBTI has absolutely no distinction between a ROTH or traditional IRA. Both are subject to filing 90Ts any paying taxes on UBTI.
There sure is some bad information in this thread. RLP - makes me want to stay at Investor Village.
hist_rpts it is most certainly correct. Unless the MLP or the group of MLPs that you hold in an IRA generates over $1,000 in UTBI (not dividends), you do not have to include the K1 on your tax form if the MLP is held in an IRA. If the MLP(s) do generate over $1,000 the taxes due on that amount are paid from your IRA by your custodian.
Why wold you think holding it in an IRA would exempt you from receiving a K-1?
The key is (for now) what the entry is on Line 20-V is. If it's over $1000 your IRA will owe taxes on the difference (anything over $1000). If it's negative, the IRA should file a 990-T form to preserve the negative UBTI against future postive UBTI if and when you sell the units.
It doesn't exempt you from receiving a K-1, only whether it affects your tax status.
You need to understand the difference between different types of IRA's. Some are tax deferred, others are not. That is what makes all the difference. One pays taxes ongoing, the other is taxed at ordinary income when you start to take it out. (tax deferred)
Not. They may not know. Ask your CPA. There is enough info on Google. How to handle K-1.
When you do taxes, there is a very simple question did you receive a K-1 ? Once you say yes, complication starts.
Spoken like a CPA. Bring your questions to me, only 100 dollars per hour.
The simple fact is tax deferred retirement accounts do not track cost basis. and if you really want piece of mind spend 34 dollars on tax software since those are all made by CPA's, CFA.'s and CMA's and