How to figure capital gains on sale of mlp's in a roll over ira

[bull1908]

How is it that you have capital gains from a MLP's in an IRA and leave or move such assets to another IRA. the cost basis out weighs the sale price, so I dont see where I would have capital gains. I did not take a distribution, straight roll over less the broker sold MLP's. The UBTI is less than the 1000 you get with no taxes due. I just donot understand how there can be capital gains.

[RobertB4444 · Accepted solution]

If the investments were sold at a loss then there should not be a capital gain to report.  You should consult with your broker as to why there are gains shown.

@bull1908 

[bull1908]

The broker can not answer these questions either. They use a third party accounting firm and I have been waiting 90 days on this information. They have sent back a bunch of garbage from some 990 t info, form 4797 that just shows capital gains no work sheets,  shcedule I schedule D form 1041 same stuff.

[SusanY1]

Can you please provide a little additional information.  Are you seeing capital gains on a 1099-B or on a K-1?  Or only on the forms that you have listed here? 

[bull1908 · Accepted solution]

there is no 1099B and the k-1 do not show any capital gains unless I do not know what line would show capital gains, these numbers are over the board. No way that I can figure out minus numbers to positive numbers, I would happy to supply the info to you..

[bull1908]

any idea

[DianeW777]

Capital gains are not a factor in an IRA. Funds are not taxable until there is a distribution from the IRA which be considered a retirement distribution and treated the same on your tax return.  A Form 1099-R will be received only when you take a withdrawal. This does not receive capital gain treatment.

If the master limited partnership (MLP) was held in an IRA, the answer is the same.  Any action inside the IRA will receive the treatment noted above.

Please provide additional details if you have more questions and we will help.  

[bull1908]

well to halfway figure this out, The MLP's were sold by the broker when I rolled over the IRA. Once this was done apparenly the sale of the MLP's triggered a UBTI from form 990T and looks like ordianary income to the IRA and taxed at some 33%..??