% | $
Quotes you view appear here for quick access.

Enterprise Products Partners L.P. Message Board

you are viewing a single comment's thread.

view the rest of the posts
  • twfry_2001 twfry_2001 Feb 21, 2012 5:18 PM Flag

    Schwab request regarding UBTI in IRA

    Do you enjoy running around making personal attacks on people, based on zero understanding?

    I have invested in MLPs for over 10 years and understand the sector and tax consequences better than most people. There was ZERO information you posted that I don't already know.

    My question was simply if others are receiving notices from their broker on IRA holdings, as I'd like to know how wide spread this is.

    That is a reasonable question.

    For your information I have 1 MLP holding in my IRA with less than $10K total, always to stay under the UBTI limit, so your comment was completely irrelevant.

    SortNewest  |  Oldest  |  Most Replied Expand all replies
    • Twfry-

      Your question was indeed confusing. The answer is also confusing.

      Your have always been required to file and pay tax on UBTI inside an IRA is the TOTAL from all your K-1s in box 20V was greater than $1000. That should be old news to everyone with MLPs in or out of an IRA.

      Second, if you had a significant negative number you MAY have your custodian file a 990T to preserve your loss carryforward. That is also old news.

      Schwab has always put a notice about this in their statemtns as a courtesy to their clients. I received mine from Schwab and also one from TD Ameritrade this year. I did not get one from anyone else I deal with.

      There is NO change in the law. Most MLPs historically have had negative UBTI, but unless I am mistaken there are going to be some big surprises this year.

      There is ONE diufference and that is the IRS can for the first time match K-1s from all companies to a taxpayer. That information is then shared with some 25 states. This will result in a bunch of billed for IRAs and probably some from states as well for income tax. I have no idea how this is going to sort out. No predictions except that UBTI numbers will be much more positive and create big IRA tax bills for the unsuspecting.

25.415-0.225(-0.88%)3:49 PMEST