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Level 3
posted Aug 24, 2022 9:56:08 AM

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!

 

0 4 1445
4 Replies
Level 15
Aug 24, 2022 11:31:42 AM

@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...

Level 3
Aug 24, 2022 11:34:17 AM

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.

Level 15
Aug 24, 2022 12:06:28 PM

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

Level 3
Aug 24, 2022 12:25:01 PM

Thanks, I will check it out.