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To: E_K_S who wrote (73020)	7/4/2023 9:22:31 AM
From: Rarebird	1 Recommendation Recommended By Lance Bredvold Read Replies (3) \| Respond to of 78817

I had a $117 UBI charge on my traditional IRA account with TD Ameritrade where I hold MLPs. Of the $117, $4 was for fees and late charges. My accountant from NYC use to tell me not to worry about MLPs if they were in retirement accounts. I figured out a while back that he had no idea what he was talking about. Anyway, TD Ameritrade was required by law to fill out the form to the IRS and they sent me the copy. I bought EPD, PAA and PAGP in my IRA account a couple of weeks ago and I am already up quite a bit in PAA and PAGP. I have no idea how this UBI works? Is it just profit plus income? TD Ameritrade gave me no hassles. I have a feeling I won't like Schwab. Maybe I switch to IB. Plan switch to Schwab is early next year for me.

To: E_K_S who wrote (73020)	7/4/2023 10:23:45 AM
From: Elroy	Respond to of 78817

This seems to be related to DCP shares that I sold (in 2022) and somehow UBI was generated from that sale. Some portion of capital gain on an MLP sale in a tax advantaged account can be classified as UBTI. I don't agree that this means one should not own MLPs in a tax advantaged account, but it does mean that many of the tax advantages of the tax advantaged account may be lost. It's a good problem to have - paying taxes on capital gains. I am in discussions with TD asking why they are not using 2020 and 2021 UBTI losses for UAN in my Roth to offset 2022 UBTI gains. All the information I have indicates UBTI losses carryfoward, and TD did not carry forward my 2020/21 UBTI losses, they just created a 990T using 2022 UBTI income, and indicating I owe taxes. If they carry forward the losses I will owe zero, and have some UBTI loss carryforward remaining (because UAN lost a ton of UBTI in 2020). However, getting their tax department to move takes weeks, not hours. I am correct, so in the end I'm pretty sure I will win. I've instructed them NOT to pay the required tax (according to their incorrect 990T preparation) until this topic (UBTI loss carryforward, use it or not?) is resolved. If you had UBTI losses from DCP in 2021 and 2020 you might ask Schwab if they included those losses in their preparation of your 2022 990T? If not, tell them to include the accumulated losses, and you may wind up with zero tax owed. Your amount is nominal so perhaps not worth the time, but it would be good to kick these brokerages into the process which benefits us customers (carry forward losses) rather than just use the easiest process (ignore history and just use the 2022 K-1 for 990T preparation). UBTI losses do carryforward in the same account for the same MLP, but the brokerages don't create the 990T's that way.