I received a K-1 (Form 1065) from PowerShares DB Commodity Tracking Fund (DBC) for shares that are held in an IRA. Apparently, DBC is a partnership, and my IRA is a limited partner. On line F, the K-1 states that the partner is a ROLLOVER IRA, and on line I it says that the entity is an IRA/SEP/KEOGH, so they know that the account is an IRA.
Included with the K-1 is a summary of how to report the information on my tax return. E.g.,
Line 5: Interest Income. $29. Report on Form 1040, Line 8a.
Line 8: Net Short-Term Capital Gain (Loss). $23. Report on Form 1040, Schedule D, Line 5.
Etc. I'm confused by these instructions. I thought that what goes on inside of an IRA is of no concern to the IRS; only what goes in and out. Is that right? Can I just ignore the K-1 as far as filing my income taxes is concerned?
Dave