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frank112
Level 3

Can IRA UBTI losses be carried over to future years to offset UBTI gains in those coming years on 990T form?

Hi,

 

My IRA is a limited partner in RE syndications that provides K1s which include UBTI-related gains or losses.

 

  1. Can IRA UBTI losses be carried over to future years to offset UBTI gains in those coming years?
  2. Can the old 990T filings be amended, and how many years back can I go, if I had losses the IRA could have carried over to offset current year UBTI gains?

Thanks!

 

4 Replies
NCperson
Level 15

Can IRA UBTI losses be carried over to future years to offset UBTI gains in those coming years on 990T form?

@frank112 why would it matter? 

 

if everything is occuring within the IRA,  there are no tax consequences - there is no capital gain tax on the gains nor are they reduced due to any losses.... once money comes out of the IRA, it is all taxed as ordinary income...

frank112
Level 3

Can IRA UBTI losses be carried over to future years to offset UBTI gains in those coming years on 990T form?

It sure does as the IRA has to file and pay UBTI on the 990T each year the gain is >= $1K and the tax is a huge % of the UBTI profit.

dmertz
Level 15

Can IRA UBTI losses be carried over to future years to offset UBTI gains in those coming years on 990T form?

See the instructions for Schedule A (Form 990-T) Part II line 17:  https://www.irs.gov/pub/irs-pdf/i990t.pdf

frank112
Level 3

Can IRA UBTI losses be carried over to future years to offset UBTI gains in those coming years on 990T form?

Thanks, I will check it out.

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