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

To: JimisJim who wrote (10399)	11/15/2011 12:20:11 AM
From: Jim P.	Read Replies (1) \| Respond to of 34328

Steve Felix is correct on the section of the tax code regarding the 990T. The tax exempt organization was aimed at churches and other tax exempt organizations from competing with tax paying businesses. The IRA also get thrown into the same category. One big advantage to the MLP in the IRA is no state income tax returns to file. As far as I can tell none of the states require income tax returns from an IRA. My taxable account with MLP's required 2 state returns to be filed. It took me a lot of time to finally not worry about crossing the $1000 limit. I let Schwab file the tax return and do not worry about it. Biggest risk is having one MLP blow up and leave you with tax due for the last year and worthless stock in the current year.

To: JimisJim who wrote (10399)	11/15/2011 9:28:43 AM
From: LTBH	Read Replies (1) \| Respond to of 34328

Steve is correct. The IRS section heading for Steve's quote, ie for "organizations exempt": "Unrelated Business Income Tax - Special Rules for Organizations Exempt Under Code Section 501(c)(7), 501(c)(9), 501(c)(17), or 501(c)(20)" The first sentence of that section:"Even though an organization is recognized as tax exempt, it still may be liable for tax on its unrelated business income. IRAs are recognized by the IRS as tax exempt entities which fall under this section. Any CPA knowledgeable about MLP tax law will confirm the above. Strongly recommend consulting an MLP qualified CPA to obtain an understanding for those considering IRAs and MLPs. Google searches, message boards and even my message are not where I would be obtaining tax advice. I do read certain message boards but I also employ a very qualified CPA to handle my MLP matters which are all held in taxable accounts not IRAs. Luck LTBH