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Strategies & Market Trends : Dividend investing for retirement -- Ignore unavailable to you. Want to Upgrade?

To: LTBH who wrote (10392)	11/14/2011 5:16:13 PM
From: RumbleFish	Read Replies (1) \| Respond to of 34328

As I understand it it's not even your responsibility to report this to the IRS if MLPs are held in an IRA. Last year I sent all my K-1s to Schwab and they filed a return on my behalf. Didn't come close to $1000 UTBI, anyway.

To: LTBH who wrote (10392)	11/14/2011 6:56:25 PM
From: gregor	Read Replies (2) \| Respond to of 34328

While we are on the topic I just received 4 distributions today on mlp's SEP NS ETP and TCLP. All of these distributions were deemed return of capital, and all were in an IRA account. My assumption is that there would never be any restrictions since the returns were on capital. gregor.

To: LTBH who wrote (10392)	11/14/2011 8:35:43 PM
From: Steve Felix	1 Recommendation Read Replies (1) \| Respond to of 34328

I have to agree that I have never seen anything like this: "$1000 tax exempt limit for MLP distributions for one IRA. $1500 tax exempt limit collectively for more than one IRA." For my money, the IRA owner ( you can have as many IRAs as you like ) is "the organization". "Even though an organization is recognized as tax exempt, it still may be liable for tax on its unrelated business income. For most organizations, unrelated business income is income from a trade or business, regularly carried on, that is not substantially related to the charitable, educational, or other purpose that is the basis of the organization's exemption. An exempt organization that has $1,000 or more of gross income from an unrelated business must file Form 990-T. An organization must pay estimated tax if it expects its tax for the year to be $500 or more." irs.gov

To: LTBH who wrote (10392)	11/14/2011 9:04:19 PM
From: Bread Upon The Water	Read Replies (2) \| Respond to of 34328

I'll see what I can do about a citation, but am not promising anything. I did read this somewhere and it stayed in mind since I have two separate IRA's and income/distributions from the MLP's that exceed $1000 per annum, but not $1500. Don't think the UBTI comes into effect UNTIL those limits are exceeded at which time the K-1 form would have to be filed with the tax return (I would think). So far have not filed a k-1 with tax returns (even tho the MLP's are reporting the income to the IRS) and haven't been bothered by the IRS about it and I think it is because I'm below the $1500 threshold for reporting (for multiple IRA's). Appreciate your input. BUTW