Tax on UBTI within an IRA is not paid directly by the account owner. The tax actually is owed by the IRA administrator, who must file the tax return and pay any tax for each account. To make sure your account is credited, mail a copy of your K-1 to the client tax reporting department of the company that holds your account. Some custodians charge a hefty fee for processing UBTI taxes. I am aware some brokers (I hear Schwab) will file the 990-T without a charge while others will upcharge for the accounting work.
Your account can also be liable for taxes in every state in which the MLP does business. Check with your tax adviser, but you don't need to worry unless you're looking to generate tens of thousands of dollars from MLPs inside your IRA.
1) If an IRA has MLP investments then the IRA may have to pay a yearly tax on the unrelated business taxable income (UBTI) of the MLP.
2) For each tax-deferred account, the first $1,000 of the combined UBTI is tax exempt. After that, UBTI is taxable as ordinary income. The distributions will be taxed at corporate rates, since it’s the tax-deferred account that’s taxed, not you personally
3) Any tax due is paid out of the IRA.
4) The tax is based on the UBTI shown on line 20V of the K-1. For many MLPs this amount is negative. Where a positive amount is shown it is combined with the negative amounts for other MLPs owned in the same IRA.
5) Since the MLPs with negative UBTI offset the MLPs with positive UBTI getting to +$1,000 of UBTI may not become a concern.
However, this can be avoided my using CEFs, such as, JMF and KMF. Personally I do not like the exchange traded products.
Bull The so called flame and chumps is herexhear and u most likely r also!
Apparently the flame etc. had bn either drinking at times or just became confused at which login the he/she used__because the MORON posted repeats of the same info using the various logins. Any body can search the posting histories.
As for myself I have seldom posted on another REIT board.
My complaint with u is thru all ur logins you post advice like u actually have a real/respected financial background yet u disregard all ethical standards that a professional would be required to uphold.
You he/she are proven to be by ur own long term record of posting to be a LIAR, MORON, financial/analytical IDIOT, a LOON and most like a phhhaqqq.
A far as debating about GM. You have many times posted back and forth to urself either out of sure idiocy boredom, to create controversy or as previously posted (because the MORON posted repeats of the same info using the various logins).
Now why do u not go away b4 you lead some naïve investor into following ur idiocy for losing assets__with ur ridicoulous posting claims 'guaranteed', 'sure bet', 'crash 100% this date', 'TBT 80 by summer', 10 yr 4.5% by Dec 2014', Santa Claus crash', 'AGNC to $10', 'Valentines Day crash 100% guaranteed', etc., etc., etc., etc. and so on and so on.
LIAR__u have bn here almost every day via your dr chumps ID
Moron if the FED raised the short end for the reasons u r proposing_it would imply nothing about future inflation. The FED would just be being purposely manipulative and the data sets that do indicate inflation pressure would show a negative divergence__hence traders would not bid up rates across the yield curve. You end up with the last thing this economy needs (a flattening of the yield curve).
Besides that you have been consistently complaining about Central bank manipulations___AND now you want them to do just that. U have become so lost in your paralysis of incorrect analysis it has now warping your views towards the role of Central Banks.
"so you shareholders will get zero"
Agree and felt sure of this many months ago__when the lenders balked at letting RSH mang execute the store closing plan. Arrow shot and hit target___game over! It is later I speculated in the 2019s (my acct reports +16.67%) on the trade 2day. I learned the lesson many years ago__if u are going speculate try to move urself up the food chain. Make no mistake this was determined to be a SPEC not an investment quite a while ago.
Codified IRS regulations for a REIT are defined in Treasury Sections 856, 857 and 859. They define that a REIT "must pay out at least 90% of its annual net taxable income as a dividend to shareholders". Additionally to keep their tax status as a trust they cannot retain earnings. ROC in this case is exactly that earnings__most likely from the sale of portfolio mortage tranches at a gain.
Chumps March 6 post__"I am now up $5 and it will soar from here. TBT is surest thing out there"
This follows the he/she(s) post claiming TBT is a no risk investment.
TBT HI 47.16
March 18 Hi 43.40
Hey Chumps wld u like mmichaelr 2 instruct u on how 2 read/calculate the 'Financial Futures' markets contracts for "Fed Funds, 2 yr, 5yr, 10yr, 20yr and 30yr over the yield curve duration. In other words after U being on the wrong side of the yield curve trade for THREE YEARS and recording losses U might learn the indications to direct ur trade instead of 'Harry Dent' type idiot projections.
The play now is in financial futures positioning btwn US instruments, EU issues, Bundesbank and Japan(s) issues.
YOU ARE A LIAR, MORON, and probably a phaq
You already failed when you attempted to link Circ 230 to 'Tax Court' when it has nothing to do with it.
Face chumps when ever a moronic idiot (urself) has come up against someone with a real collegiate background and professional certifications (myself) you have lost and will continue to do so. It is a fact of life that education trumps idiocy every time.
For approaching 3 years now you have posted moron economic views and the markets have consistently proven u wrong. Where as; my posted views have been correct. From your own posts you have now for 3 consistent years have created tax loss carry forwards during one of the most prolific Bull markets in history.
Your recent moron post trying to claim this is a continuing Bear shows the functional disconnect from reality you are afflicted with___it is about corporate earnings you IDIOT not the balance sheets of individuals. YOU LOSE AGAIN and always will because non-educated morons with made up 'Cracker Jack' backgrounds always come out on the bottom. You have failed to achieve in a capitalistic society.
I would try to bet you on some of your posts (that you leave the board) once you lose again but the Doc Reits crew did that with your hearxhere ID and you just renigged and created all those hundreds of Flame IDs.
You are a MORON, a FRAUD, a LIAR, and suffer from a total lack of ETHICS!!!
The moron claims tax courts fear the he/she. Then cites circular 230 and dares me to ask any question.
"I am a lot higher than a Enrolled Agent. or a Certified Public Accountant, and can recite Circular 230 front to back, up and down and all around. I am 100.00000% certain of this, just ask me a question, any question, any letter and anything........EA's and CPA's are like kids, most are imposters"
Download the pdf file for circular 230__search for info about practicing in tax court___it is not contained in the file. Why? Because circ 230 is about representing an entity in administrative hearings with the IRS. Not ‘Tax Court’ Tax Court is ‘Federal Court’ and ONLY an Enrolled Agent or attorney with correct collegiate credits can represent in ‘Tax Court’. That is why you are wasting your coin to use a C.P.A. for complicated taxation advice and preparation.
This moron chumps does not even realize this distinction yet read the claims he/she posted.
JUST A phaggggottt LIAR.
"Tax Courts don't like to see me, I always win"
Only an E.A. or an attorney with correct collegiate credits can represent in 'Tax Court'. Since you just admitted that not an E.A.___do u really think a moron like you that cannot even assemble correct analytics and post grammatically correct__could ever even qualify to sit or pass the bar.
Your lying is becoming ever more indicative of a very sick mind desperately attempting to find legitimacy. Of course any of us who viewed aghast your hundreds of pathetic ID creations extending from the hearXhere and flame legacy__already were aware of just how sick your mind is!!!
You are a LIAR you are not an E.A. or a C.P.A. The credentialed ethics boards for these certifications would hv run u out years ago!!!!!!!!!!!!!
You hv to remember chumps thinks Harry S. Dent and other perma-bears and idiot Elliot Wave tea leave ravers are qualified analysts__his fellow morons who have never faced even one page of a CFA or CTA credentialed test!!Let us not forget the buffoon chumps thinks local market priced sweet corn is equivalent to an exchange traded price discovery futures contract, and that European bourses trade at 6:30 pm Central time, and that Russia actually trades Treasury(s) and that somehow commodities were two years ago in downward spiral when the yr-over-yr CRB index had moved +13%. How about those 100% guaranteed equity crash predictions (such as Valentine(s) day 2014) or what now for the last 3 yrs the endless posts that the US 10 yr would be at 4.5%, and chumps recent posts about a 'TBT' short in the 10 yr (when even a 4th grader would notice that the ETPs title and summary states the ETP speculates in derivatives in 20 yr and + range over the yield curve. Never mind the fool actually refers to a derivative upon a derivative product is an investment and not a speculation.
Brokerages are just a pass thru of the info. it is the equity(s) 'Transfer Agent' that develops the tax notice based on information supplied by the company itself.
" I have been investing 30% of my accounts in this trade "
Let us make sure we understand this. No cash flow, no earnings, no income and that is an investment__I suppose all those option trades around dividend cycles were also not a speculation but an investment.
We all know now whom would never be a 'CFA'
you say short the 10 yr__yet again TBT does not___you need a different vehicle. TBT uses derivatives to weight +20 years. You are such an idiot u cannot comprehend the vehicles u speculate with!!
With all ur continued posting__you might obtain at least a minimum of credibility if you were to post the correct terminology.
1st) U are not short ‘TBT’ or the10 year Treasury__U are long an ‘ETF’ (TBT) that attempts to achieve a 2x daily multiple inverse relationship to an index created by Barclays for 20 year and greater U.S. Treasuries. If u were short “TBT” u wld b speculating that those long dated Treasuries would increase in asset valuation!
That brings up this__
2nd) TBT has no cash flow, no earnings, no income stream__it is not an investment but a speculation via a derivative “TBT” itself employing other derivatives (futures, options and swaps)__that is meant for day and short term swing trades/hedging.
3rd) Only a financial/economic ‘MORON’ would post that any leveraged derivative ETP is “a no risk investment”
The codified IRS regulations define that a REIT "must distribute at least 90% of its annual net taxable income (excluding capital gains) to shareholders". The three important concepts are 'at least 90%', 'taxable income' (not EPS) and 'annual' (not quarterly or semiannual but the annual amount). For a 'pass through entity', such as a REIT; the only relationship EPS has to the dividend is the relationship to taxable income. These considerations are why even though they can payout more than 90% they usually hold back to allow some flexibility for the annual total.
That said; consider these Treasury (IRS) Regulations:
Under §Section 858, a real estate investment trust may elect to treat certain dividends that are distributed within a specified period after the close of a taxable year as having been paid during the taxable year.
Now consider/consume this:
1) §Section 857(b)(9) provides that dividends declared and payable during the last three months of a calendar year and actually paid during January of the following calendar year
are deemed paid on December 31 of that calendar year or,
if earlier, as provided by section 858).
2) §Section 858(a) provides that if a REIT declares a dividend before its return due date, and distributes the dividend within 12 months of year end (but not later than its first regular dividend payment), the REIT may elect in the return to treat the dividend as paid for the year covered by
3) §Section 860 allows for the deduction of deficiency dividends. The definition of a deficiency dividend includes additional amounts required to be paid, as determined by the REIT prior to any controversy with the IRS. Section 860(e)(4).
Has the concept of distribution flexibility ‘fallen’ on u yet? There is no need to adjust a one month payout__towards a yearly. If that were 2 happen_it wld (probably) reflect a decrease trend in forward distributions.