More UBTI stuff:
I believe you are right: I've received positive or sometimes negative UBTI, but only small amounts with my pipeline mlp's.
I might be confusing two things here, as I consider this. If there's a year when distributions-depreciation results in UBTI greater than the threshold, then I'd want that positive amount to be offset with past years of any cumulative negative UBTI. I see how difficult that seems to be for the tax preparers.
Where I assume I might be ok, but don't know for sure, is when I sell units. When I sell I hope the k-1 will show the effect of depreciation recapture and give me a resulting correct adjusted cost basis. That information I expect will be used by the 990-T preparers to calculate UBTI as a result of the sale(s). (Assuming that I have a positive gain from the sales minus adjusted cost basis.)
As regards something like EPD which I've held in an ira since 2017, every year there's been a distribution, and UBTI has been neg or pos, but under the $1000 threshold. Because though there's been a distribution every year I've held, I believe every year my cost basis goes lower and lower. There've been no sales of units, and the current k-1 does not show adjusted cost basis for units. I've no idea what my adjusted cost basis is.
So here's where I assume, but don't know, that the k-1 people are properly adjusting the cost basis of my units every year, so when and if I sell, the 990-T preparers get the correct adjusted cost for each unit sold. |
