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Deductions & credits
It seems that the partnership has not properly identified the entity type of the partner. Your HSA is the partner, not you. Box I1 probably should have indicated HSA as the entity along with box I2 being marked. An HSA is treated similarly to an IRA.
If a Schedule K-1 (Form 1065) shows an amount with code V in box 20 for UBTI and the total of the code V amounts of all similar investments held by the HSA is more than $1,000, the HSA must file Form 990-T and pay UBIT. This UBTI is an internal expense of the HSA, not a distribution, so it simply reduces the balance of the HSA. See the instructions for From 990-T:
March 23, 2025
6:30 AM
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