Have a Tax Question? Ask a Tax Expert
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.
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.
My goal is to give you excellent service. If you are satisfied, please rate me. If you have follow-up questions on this same topic, use the reply box below. To start a new conversation with me on a new topic request me again.
Customer Last Viewed Today at 9:53
Customer Last Viewed Today at 10:45