Thanks dmertz for your detailed answers to date.
1) I remain disturbed that my assets within an IRA can incur tax liability upon selling MLP stock for amounts I never received or materialized in the IRA account, and is much different from the other normal calculation for capital gain (being net sale price minus net purchase price). For example, the IRA gain calculated for one MLP stock sold is $47,102 yet the monthly custodian statement shows the "normal" calculation of $19,843 (which is the amount actually received in the IRA account.
2) The accounting firm used by the IRA custodian commingles the return of capital for 2016 and 2015 together with such separately calculated capital gain -- treating such commingled amount as being short-term (applied on Form 4797, Part II as "property held less 1 year or less". Such custodian documents sent to me recently state in a table titled “K-1 Form 1065 – PTP Summary”) two sets of amounts being applied as being subject to taxation:
? the UBTI amounts found on line 20V of the K-1 (for 2016 and for 2015), plus
? a second row in the summary table of amounts titled “1065 K-1”.
Is such commingling or end treatment as a short-term investment correct?
3) The custodian-supplied Form 4797 “Sale of Business Property” bundles two types of income as being capital gains and then transferring such bundled amounts to Form 990-T “Exempt Organization Business Income Tax Return” Part I “Unrelated Trade or Business Income” line 4b. Part of such bundled amounts originate from PTP Summary table row 1, classed by the custodian as “1065 K-1”. There is another entry for such same amounts by the custodian to Form 4797 Part I line 5 “Income (loss) from partnerships and S corporations”. Which entry is incorrect, because having both such entries on Form 990-T become off-setting and appear to leave the sub-total over-stating includable income. It would appear the line 4 amount should not include the amounts from PTP Summary table row 1, classed by the custodian as “1065 K-1”.
