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posted Jun 4, 2019 1:56:01 PM

K-1 not required for Feds, due to it being an IRA. Still required for State Return ?

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Level 9
Jun 4, 2019 1:56:03 PM

Only if there is "unrelated business income." An IRA holds investments and partnership income may not be investment income, resulting in UBI from your partnership investments. The amount of unrelated business income from your IRA's partnership investments will be listed as such in Box 20 of the K-1 form. Only the amounts of unrelated business income are important concerning taxes and your IRA account.

If your IRA earns more than $1,000 in unrelated business income as reported on the K-1s you received, the IRA must pay unrelated business income tax -- UBIT -- on the amount above the $1,000 cutoff. If the K-1s you received total to less than $1,000 in UBI, there is nothing you need to do.

1 Replies
Level 9
Jun 4, 2019 1:56:03 PM

Only if there is "unrelated business income." An IRA holds investments and partnership income may not be investment income, resulting in UBI from your partnership investments. The amount of unrelated business income from your IRA's partnership investments will be listed as such in Box 20 of the K-1 form. Only the amounts of unrelated business income are important concerning taxes and your IRA account.

If your IRA earns more than $1,000 in unrelated business income as reported on the K-1s you received, the IRA must pay unrelated business income tax -- UBIT -- on the amount above the $1,000 cutoff. If the K-1s you received total to less than $1,000 in UBI, there is nothing you need to do.