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What do I report for an LP in a Roth IRA?
I purchased 20 shares of a Energy Transfer LP in my Roth IRA through Etrade. At the time I did not know anything about LPs. I sold it last year as I learned more about LPs. I received a K1. It did not make any money. There are about 30 states listed, but all report zero in the far right column for reporting state tax, thankfully. What do I need to report on my tax return for this year? What form would I complete?
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Retirement tax questions
If the shares of the partnership were purchased within your IRA, then the K-1 should be reported to the Federal ID number of your IRA instead of your Social Security number. If that is the case, then you do not enter any of the K-1 information on your personal return. Keep it for your records.
Look for the partner's ID number shown on the left side of the K-1 to be sure your Social Security number is not there.
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Retirement tax questions
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USAR 64-67 AIS/ASA MOS 9301 - O3
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Retirement tax questions
If you hold a Limited Partnership or LLC in your IRA then any Unrelated Business Income in excess of $1,000 is taxable (even though it is in an IRA). It is not reported on your tax return but on a 990-T form. (The custodian of your IRA is required to file the form for you but you must submit the K-1 form(s) to them - ask the custodian about this).
Unrelated Business Income is reported as code "V" in box 20 on the K-1 form.
Also see pub 598.
<a rel="nofollow" target="_blank" href="http://www.irs.gov/publications/p598/ch01.html">http://www.irs.gov/publications/p598/ch01.html</a>
Per the 990-T Instructions: <a rel="nofollow" target="_blank" href="https://www.irs.gov/pub/irs-pdf/i990t.pdf">https://www.irs.gov/pub/irs-pdf/i990t.pdf</a>
"Who Must File
Trustees for the following trusts that
have $1,000 or more of unrelated trade or
business gross income:
1. Individual retirement accounts
(IRAs), including traditional IRAs"
4. Roth IRAs described under section
408A,
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Retirement tax questions
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USAR 64-67 AIS/ASA MOS 9301 - O3
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Retirement tax questions
In general, I should not need to file anything for my Roth IRA in this case? If anything, ET LP would if $1,000 or more. Since under $1,000-no file?
As a side note, I sold the ETP LP before it merged with ETE LP and became ET LP.
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Retirement tax questions
partnership(s).
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Retirement tax questions
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Retirement tax questions
Hi, I read thru this series of Q&As, but I am still not quite clear on how to process it. My situation is I have a ROTH IRA with TD Ameritrade, and I trade a few times Energy Transfer (ET) stocks in 2021 and I had more than $1000 gains. Now I got K-1 from the ET, and also 990-T from TD Ameritrade. TD Ameritrade indicates it will file the 990-T to IRS on my behalf and take money out of my ROTH IRA to cover the tax due. So now my questions are:
- My account is ROTH IRA, do I have to pay tax on gains from trading ET stock?
- If I do, why does TD Ameritrade file 990-T for me, can I file it in my 1040?
- Is the money TD Ameritrade is taking out from my Roth ira account just tax withheld? Can I file a 1040-X to claim back the overpay part and put it back to my Roth IRA, because my calculation shows TD Ameritrade pays more than I should?
Thanks. I appreciate it if you can shed some light on my case.