Do you have to pay a capital gains tax or declare that you had a dividend over $1000, my accountant says that no problem be cause you are not taking it out, any replys would be appreciated.
Anything you take out of an IRA is taxed as ordinary income, regardless of the source. This is much ado about nothing. Whether the original source of your income within the IRA was cap gains, dividend, interest, UBTI, etc., it doesn't matter. It's not taxed until you withdraw it and then its taxed as ordinary income.
Not sure, I've read a lot lately and several analysts caution about the tax complexity issues in a retirement account. Did you consider a MLP ETF instead if you didn't buy yet? Do a search for You Can Hold MLPs in Your IRA Dividend Digest Income Insights. I thought it was a good article.
Depends on the MLP. Some have Unrelated Business Taxable Income (LINE generally has negative UBTI), but if you own enough untis to where the UBTI is over $1000 in any one year, then yes, the IRA is supposed to pay taxes on the overage.
In addition, upon sale of the units (if you ever do sell them in an IRA, which I wouldn't recommend), all prior deductions the MLP used - depreciation, depletion, etc. - are reversed, and that is all considered UBTI. So, if you hold it for many years, UBTI may accumulate and upon sale become quite large. UBTI tax rates are higher than ordinary tax rates, and Roth IRAs are not exempt from UBTI.
WRONG. I had a large amount of Line in my IRA in he past and had to pay tax on excess of $1000. in UBTI. I think the tax rate was around 35% taken out of you IRA and forms had to be filed by Broker.Annd some charged high fees for filing.I have sinced switched all over ti LNCO. No further problems. Read the IRS publications,do not count on legal info here. ps:I only show a hold rating because I have enough now.