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?
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.