Hi
Yep I sold 198 units of SPH (Suburban propane) 0n 3/24/2022. Bought 326 units on 1/11/2022.
This was in my Roth account. I am over 60 years old. Roth is 20 years old.
Received 2022 Schedule K-1 last March (2022).
Box 20V shows -306
*STMT shows..... 20V1 -306, 20Z1 -306, 20AB 202, 20AE 197, 20AH1 1,790, 20AH2 0
If I'm correct my broker had no need to file a 990-t for 2022 (less than $1000.00 income).
I am assuming sale of units with gains and dividends less than $1000.00 would not create a taxable event.
I'm not sure 20AH1 Gross Profit (Income) $1790 is part of my gains or Dividend income.
I'm sure if i should have attach IRC Section 751 Statement to my 2022 tax return.
Any help be appreciated.
It would. But it is done exactly as it should be. It shows that your Roth owns these shares - not you. And earnings inside a Roth are not taxable. So nobody needs to pay taxes on this. And you need to ignore it as far as your tax return goes and just save it for your records.
Was the K-1 issued to your social security number with no mention of your IRA? It should have been issued to your Roth account in which case your social security number wouldn't be on the form and you have no reason to report this. It is only for your records.
If it was issued to you as an individual (which it shouldn't have been) then you can either -
Request a corrected K1,
leave it off and prepare to deal with letters from the IRS to which you will need to respond with a copy of the K1 and some proof that the holdings are in your Roth,
or enter the K1 onto your return along with corresponding negative entries that remove the income or losses from your return and provide the explanation in the notes.
No matter what, if the K1 was issued to you as an individual and doesn't say anything about being in your IRA then you need to contact your broker or the issuer of the K1 and get this corrected going forward.
Thank you,
Part I Box B shows Suburban L.P.
Part II Box F shows my name and C F Roth IRA
Box I1 What type of entity is this partner? shows Roth IRA
The K-1 came with the 2022 Tax reporting package sent from Suburban Propane to my address.
I'm assuming all the info. in the package would cover units held in a Trad. or Roth or brokerage accounts.
2022 Sales Schedule shows
(8)* Section 751 Gain (ordinary income)
202
is less than $1000
So my Apex C/F Roth IRA would pay the taxes (990-T) if any were owed.....Correct?
It would. But it is done exactly as it should be. It shows that your Roth owns these shares - not you. And earnings inside a Roth are not taxable. So nobody needs to pay taxes on this. And you need to ignore it as far as your tax return goes and just save it for your records.