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Tax question - K-1 for IRA holding
03-25-2015, 06:55 AM
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#1
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Thinks s/he gets paid by the post
Join Date: Aug 2006
Posts: 2,433
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Tax question - K-1 for IRA holding
I bought some SVXY (ProShares short VIX futures ETF) in my Rollover IRA. Yesterday I received a K-1 for this holding. It showed appreciation in the value of the shares but there was no Unrelated Business Income shown in Box 20. Can I just ignore this for my Federal income tax filing since it is held in a tax-deferred account?
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I'd rather be governed by the first one hundred names in the telephone book than the Harvard faculty - William F. Buckley
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03-25-2015, 07:19 AM
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#2
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Give me a museum and I'll fill it. (Picasso) Give me a forum ...
Join Date: Nov 2010
Location: Sarasota, FL & Vermont
Posts: 36,364
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Just off-the-cuff I would think so since IRA income isn't taxed until it is withdrawn.
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Patience is the art of concealing your impatience.
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Retired Jan 2012 at age 56
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03-25-2015, 07:20 AM
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#3
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Thinks s/he gets paid by the post
Join Date: Jul 2009
Posts: 1,934
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With no UBI its sounds to me as though there is nothing to report.
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And if I claim to be a wise man, it surely means that I don't know.
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03-25-2015, 08:20 AM
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#4
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Recycles dryer sheets
Join Date: Jun 2010
Location: Southwest Florida
Posts: 470
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Ignore it completely regardless of what it says. It doesn't apply to an IRA.
Bruce
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03-25-2015, 11:12 AM
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#5
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Confused about dryer sheets
Join Date: Dec 2014
Posts: 4
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Not exactly. If Box 1 or 2 has an amount in it, and that amount in the aggregate for your IRA adding up all K-1s is greater than (I think) $600, then you have UBI and the IRA custodian must file an income tax return and pay tax on the UBI. So, for example, NEVER buy a MLP in your IRA, as they generate ordinary income.
The Proshares partnerships as far as I know have never thrown off any box 1 or 2 income, so they probably can be ignored. But I would look to see, being OCD.
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03-25-2015, 12:10 PM
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#6
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Moderator Emeritus
Join Date: Apr 2011
Location: Conroe, Texas
Posts: 18,727
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I have an MLP in my IRA and each year, the account custodian files the tax report for the MPL as they are required to do. All I prove them is the K-1 information from the MLP which I have sent to me.
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*********Go Yankees!*********
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03-25-2015, 12:47 PM
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#7
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Thinks s/he gets paid by the post
Join Date: Jul 2006
Posts: 1,901
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Here's some more info:
How to Report a K-1 on an IRA Account | Finance - Zacks
"IRA and UBIT
If your IRA earns more than $1,000 in unrelated business income as reported on the K-1s you received, the IRA must pay unrelated business income tax -- UBIT -- on the amount above the $1,000 cutoff. Not all of the distributions you receive from MLP investments will be UBI, and many partnership investments will report little or no UBI on the K-1s they send out. If the K-1s you received total to less than $1,000 in UBI, there is nothing you need to do. With more than $1,000 in UBI you need to contact your IRA custodian."
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“I guess I should warn you, if I turn out to be particularly clear, you've probably misunderstood what I've said” Alan Greenspan
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03-25-2015, 05:09 PM
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#8
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Thinks s/he gets paid by the post
Join Date: Aug 2006
Posts: 2,433
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Thanks to all for your input. On the K-1 that I received, Boxes 1 and 2 were blank in addition to Box 20. You have re-enforced my initial inclination to ignore the K-1 in filing my tax return.
__________________
I'd rather be governed by the first one hundred names in the telephone book than the Harvard faculty - William F. Buckley
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