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Robin D.
Robin D., Senior Tax Advisor 4
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Experience:  15years with H & R Block. Divisional leader, Instructor
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I have a IRA and received 2 schedule K-1 tax forms for 2012.

Resolved Question:

I have a IRA and received 2 schedule K-1 tax forms for 2012. I did not include this in my 2012 return. I was told I only had to pay taxes on this when I withdrew my required anual amount. I have just read that this is not the case. What do I do to clear this up
Submitted: 10 months ago.
Category: Tax
Expert:  Robin D. replied 10 months ago.

Robin D. :

Hello and thanks for trusting me to help you today. I am a tax adviser with over 15 years of experience.
The K1 would have been sent actually to the IRA not you personally.


Check to make sure that the recipient of the K-1 is not you personally, but rather your IRA. The IRA should have its own tax ID number, and should be listed as something like "Custodial IRA for (Your Name)".
Normally if the IRA has Check for unrelated business taxable income, or UBTI. Generally, the only time you have to report the income from your K-1 in an IRA is when your investment generates an excess of UBTI. Unrelated business taxable income is generated when an IRA invests with direct ownership in an income-producing investment, particularly in investments that are leveraged.


Robin D. :

Fill out Form 990-T, "Exempt Organization Business Tax Return," if you have UBTI over $1,000. Some, but not all, IRA custodians will complete your Form 990-T for you.


Robin D. :

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Robin D. :

Customer Last Viewed Today at 9:53

Robin D. :

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Robin D., Senior Tax Advisor 4
Category: Tax
Satisfied Customers: 7363
Experience: 15years with H & R Block. Divisional leader, Instructor
Robin D. and 8 other Tax Specialists are ready to help you
Expert:  Robin D. replied 10 months ago.
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