In December, 2011 I invsted $6000 in EUO (Pro Shares Ultra Short Euro Fund).
I just received a K-1 Form, showing a $177 gain in box 11, coded C.
I sold the shares in January, 2012.
This was done in my Ameritrade IRA account (the money was already in the account from years earlier, and I have not taken any IRA distributions).
Do I need to do anything with this regarding my taxes. In fact, do I need to even keep this paperwork?
Mel
The K-1 is for your info only and doesn't affect your 1040. There's no tax reason to keep it.
Phil Marti VITA/TCE Volunteer Clarksburg, MD
just received a K-1 Form, showing a $177 gain in box 11, coded C. I sold the shares in January, 2012. This was done in my Ameritrade IRA account (the money was already in the account from years earlier, and I have not taken any IRA distributions). Do I need to do anything with this regarding my taxes. In fact, do I need to even keep this paperwork? Mel -- > > > > > > > > > >
Phil, I get two K-1 that do effect my 1040, although by very tiny amounts. Do you mean this particular K-1 doesn't because it is for an investment in an IRA? I also thought you had to hold onto K-1 information for when you sell it, assuming you do.
As a general rule, whatever happens inside an IRA stays in the IRA.
So if inside the IRA interest or dividends are paid or foreign taxes are taken out, or anything is sold, the 1040 is not affected.
There are some exceptions, such as buying in an IRA securities substantially identical to securities outside the IRA sold within
30 days at a loss. Another exception is if at least $1000 of Unrelated Business Taxable Income was generated in the IRA.But in answer to your quetion, it comes under the adage: What happens in the IRA stays in the IRA.
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