Is it necessary to fill out the K-1 information in TurboTax if my total annual distributions are less than $1,000, or is it a waste of time? My concern is that maybe the IRS will say we show you received distributions, but you didn't declare them.
UBTI is not based on distributions. The $1000 limit is for UBTI not distributions.
In any case, reporting UBTI is not done with your personal tax return - Turbotax cannot handle it.
It is a separate process and had to be done with/by the IRA custodian.
Liza, hate to bring up this subject again, but my 2011 tax return was reviewed by the IRS. I got hit some taxes on a sale of a mlp that the IRS calculated as related to previous depreciation. The IRS then described this as UBTI. My research indicates that per the rules/law that they are correct but the IRS had ignored in the past. Any comments? This is just when I thought I understood UBTI in an IRA.