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Posted by Ira Smilovitz on March 20, 2007, 2:06 am
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>> It belongs to the IRA, and has absolutely nothing to do
>> with your tax return. If the IRA has enough UBTI (Box 20,
>> Code V), your IRA might have to file a tax return, and pay
>> tax. If you didn't know that already, your IRA has no
>> business owning PTPs.
> Can an IRA have UBTI? An IRA's exempt purpose is to invest
> and to grow. What could be unrelated to that and still
> generate income?
IRA's most certainly can have UBTI. See, for instance, the
instructions for Form 990-T.
Ira Smilovitz
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Posted by Stuart A. Bronstein on March 20, 2007, 3:24 pm
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>> Can an IRA have UBTI? An IRA's exempt purpose is to invest
>> and to grow. What could be unrelated to that and still
>> generate income?
> IRA's most certainly can have UBTI. See, for instance, the
> instructions for Form 990-T.
I understand that the IRS takes that position. What I don't
understand is the legal basis. How could any investment be
unrelated to its exempt purpose when it's purpose is to make
investments?
Stu
<< ======================================================= >>
<< The foregoing was not intended or written to be used, >>
<< nor can it used, for the purpose of avoiding penalties >>
<< that may be imposed upon the taxpayer. >>
<< >>
<< The Charter and the Guidelines for submitting posts >>
<< to this newsgroup as well as our anti-spamming policy >>
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<< Copyright (2006) - All rights reserved. >>
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Posted by DF2 on March 18, 2007, 2:37 am
Please log in for more thread options Phoebe Roberts, EA wrote:
> nearly_blind@yahoo.com wrote:
>> I owned the exchange traded oil fund USO in my traditional
>> IRA last year (2006).
>>
>> Apparently its really a L.P. or publically traded
>> partnership
> Grrrr. I always yell at brokers who do that.
>
> It belongs to the IRA, and has absolutely nothing to do
> with your tax return. If the IRA has enough UBTI (Box 20,
> Code V), your IRA might have to file a tax return, and pay
> tax. If you didn't know that already, your IRA has no
> business owning PTPs.
I would like to hear your reasoning. Most PTPs seem to have
negative UTBI. But if I am making a dumb mistake, I can't
blame the broker.
I do fear that at some time I will get hit with the UBTI
~30% tax plus probably a fee for filing the tax. I think I
understand that aspect to a point. If I could keep the UTBI
under $1000 in a year, then no problem.
What I am ignorant of is, suppose I reach a point where
depletion does not offset any more, the basis has dropped to
zero, and I then sell the PTP that is in the IRA, am I going
to have a big tax event where the depletion is suddenly
recaptured as UBTI?
<< ======================================================= >>
<< The foregoing was not intended or written to be used, >>
<< nor can it used, for the purpose of avoiding penalties >>
<< that may be imposed upon the taxpayer. >>
<< >>
<< The Charter and the Guidelines for submitting posts >>
<< to this newsgroup as well as our anti-spamming policy >>
<< are at www.asktax.org. >>
<< Copyright (2006) - All rights reserved. >>
<< ======================================================= >>
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Posted by Bill on March 18, 2007, 2:37 am
Please log in for more thread options nearly_blind@yahoo.com posted:
> I owned the exchange traded oil fund USO in
> my traditional IRA last year (2006).
> Apparently its really a L.P. or publically traded
> partnership (PNP) and I just received
> Schedule K-1 from USO. Do I need to include
> this info in my 2006 return or can I avoid this
> because it was held in an IRA?
Anything held within an IRA is deemed to be owned by a
separate entity, and not subject to taxes until
distributions are taken.
So long as the ownership is properly titled, i.e., "XYZ,
TTEE FBO IRA of N_B" (or something to that effect) ... there
should never be a question.
Bill
<< ======================================================= >>
<< The foregoing was not intended or written to be used, >>
<< nor can it used, for the purpose of avoiding penalties >>
<< that may be imposed upon the taxpayer. >>
<< >>
<< The Charter and the Guidelines for submitting posts >>
<< to this newsgroup as well as our anti-spamming policy >>
<< are at www.asktax.org. >>
<< Copyright (2006) - All rights reserved. >>
<< ======================================================= >>
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Posted by Benjamin Yazersky CPA on March 18, 2007, 2:37 am
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> I owned the exchange traded oil fund USO in my traditional
> IRA last year (2006).
>
> Apparently its really a L.P. or publically traded
> partnership (PNP) and I just received Schedule K-1 from USO.
> Do I need to include this info in my 2006 return or can I
> avoid this because it was held in an IRA?
Although I am not familiar with that particular entity, I
think the answer is who is the shareholder/investor in it.
Whose name is on the K1 should help to determine if it is
taxable to you or not.
You may want to consult with your CPA/tax advisor.
___________________________________
<<< Benjamin Yazersky, CPA [NJ & NY] >>>
-----> real address on hobokeni or hobokenx <-----
<< ======================================================= >>
<< The foregoing was not intended or written to be used, >>
<< nor can it used, for the purpose of avoiding penalties >>
<< that may be imposed upon the taxpayer. >>
<< >>
<< The Charter and the Guidelines for submitting posts >>
<< to this newsgroup as well as our anti-spamming policy >>
<< are at www.asktax.org. >>
<< Copyright (2006) - All rights reserved. >>
<< ======================================================= >>
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