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I have just received a K-1 statement for my IRA with $4k in…

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I have just received...

I have just received a K-1 statement for my IRA with $4k in losses and took $14k in distributions for the year. Do I need to report the K-1?

Accountant's Assistant: The Accountant will know how to help. Please tell me more, so we can help you best.

As stated above

Submitted: 3 months ago.Category: Tax
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Answered in 2 minutes by:
3/17/2018
Tax Professional: Robin D., Senior Tax Advisor 4 replied 3 months ago
Robin D.
Robin D., Senior Tax Advisor 4
Category: Tax
Satisfied Customers: 18,036
Experience: 15years with H & R Block. Divisional leader, Instructor
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Hello, I'm Robin. Welcome to JustAnswer. I'm reviewing your question now and typing up my reply. I'll post that in just a few moments.

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Tax Professional: Robin D., Senior Tax Advisor 4 replied 3 months ago

Tax rules require tax-advantaged accounts like IRAs to pay income tax on what is called "unrelated business income" (UBI).

Your IRA and not you is responsible for paying any UBIT. The custodian of your IRA will complete and file a tax return in the name of your IRA account. The custodian will charge a fee for this service and any taxes due will come out of the IRA value. If you see that your UBI on the partnership investments in your IRA is greater than the $1,000 exemption, contact the custodian to find out exactly how the UBIT will be handled.

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Customer reply replied 3 months ago
Thank you
Tax Professional: Robin D., Senior Tax Advisor 4 replied 3 months ago

You are most welcome.
A positive 5 star rating is appreciated so I am credited for assisting.

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