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Bill, Enrolled Agent
Category: Tax
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Experience:  EA, CEBS - 35 years experience providing financial advice
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Stock gains/loss/dividends are not reported to the IRS each

Resolved Question:

Stock gains/loss/dividends are not reported to the IRS each year in an IRA.
If you hold a MLP (master Limited Partnership) stock in an IRA do you have the more complicated tax caluculations that you would have in a regular account. Or are they not reported at all like any other stock.
Submitted: 6 years ago.
Category: Tax
Expert:  socrateaser replied 6 years ago.
Any property can be held in a self-directed IRA -- as long as the investor does not receive any present benefit from the property (e.g., you can't live in a home that you place in an IRA -- it must be pure investment property). The IRA would simply be the recipient of the K-1 for any profit or loss.

Hope this helps.

Edited by socrateaser on 11/1/2010 at 2:19 AM EST
Expert:  Bill replied 6 years ago.

If the MLP generates unrelated business taxable income (UBTI) in excess of $1,000 then the reporting becomes more complicated. If the UBTI exceeds $1,000 then taxes have to be paid from the IRA on the amount in excess of $1,000. The UBTI must be reported on Form 990-T and taxes paid with this form. If the MLP does not generate UBTI or the amount of UBTI is less than $1,000 then no taxes have to paid nor does form 990-T have to be filed. The MLP should be able to advise you whether UBTI is generated and a general idea of the amount that was generated in past years.

 

http://seekingalpha.com/article/140538-mlps-for-tax-deferred-acounts

 

http://www.mhinvest.com/supportArticles/MLP-IRA.pdf

 



Edited by Bill on 11/1/2010 at 2:38 AM EST
Bill, Enrolled Agent
Category: Tax
Satisfied Customers: 3153
Experience: EA, CEBS - 35 years experience providing financial advice
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Expert:  socrateaser replied 6 years ago.
What's this? You have edited your original question after I answered it! How marvelous.

Edited by socrateaser on 11/1/2010 at 2:51 AM EST