Sch K-1 (Form 1065) Part II, I1 and I2, identify entity as IRA/Sep/Keogh. You do not question this and it does not appear on the TurboTax Worksheet. Is this important?

I hold this publicly traded partnership, PowerShares DB US Dollar Index Bearish Fund, in my rollover IRA account.  Yet I am being presently taxed on Other Income (Part III, 11C).  Perhaps this is required for K-1 items in an IRA.  TurboTax does not give me a question that allows me to show that my entity is an IRA.  And it does not appear in the type of entity block on the Turbo Tax worksheet.  This causes me to wonder, did Turbo Tax neglect to ask for information on the K-1 that it needs to know to correctly determine my tax consequences.


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If the amount in box 20 with code "V" is more than $1,000, then it must be reported - but not by you on your tax return, but by the IRA custodian on a 990-T form.  (Most IRA custodians send a letter to IRA owners that hold such an investment notifying them of this).

If you hold a Limited Partnership or LLC in your IRA then any Unrelated Business Income in excess of $1,000 is taxable (even though it is in an IRA). It is not reported on your tax return but on a 990-T form. (The custodian of your IRA is required to file the form for you but you must submit the K-1 form(s) to them - ask the custodian about this).


Unrelated Business Income is reported as code "V" in box 20 on the K-1 form.


Also see pub 598.

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