Hello,
I have owned an MLP in my Roth since 2020. In 2020 and 2021 it threw off UBTI losses which are larger than the UBTI income it threw off in 2022. I have not sold the entire position.
Am I able to use the 2020/21 UBTI losses from this MLP to offset it's UBTI income in 2022? My broker has created the 990T form for 2022, and my broker has not utilized any of the 2020 or 2021 UBTI losses to reduce the 2022 UBTI income. As a result my broker thinks my Roth has incurred a tax obligation due to 2022 UBTI income in the Roth being greater than $1,000.
I am wondering whether it is worth it to tell my broker not to file the 990T and not to pay the owed tax amount it has calculted out of my Roth for 2022, and instead hire a CPA which will use the historical 2020 and 2021 UBTI losses for this MLP to offset the 2020 UBTI gains?
Does anyone know if previous year UBTI losses can be carried forward to offset current year UBTI income from the same MLP if that MLP is not sold, and it's in a tax advantaded account? If so, does anyone know on which line of the 990T this UBTI loss carryforward should appear?
Thanks in advance for any advice.
