I received a K1 for an IRA holding of a PTP. Doing some research, it seems that if there is unrelated business income in excess of $1,000, the IRA trustee has to file a tax return.
This K1 shows a loss for the relevant entry (line 20V). If in a subsequent year, there is a gain, does this year's loss offset that? And, if so, is there anything that needs to be done to preserve that option?
Thanks for any education on this topic.
--ron
As a PTP investor, you should certainly keep track of the losses; the UBTI is calculated like it would for other income tax returns, and so, prior year losses would offset current year gains; but you could end up having to file a tax return for the retirement account. This is one of the reasons that I stay away from investments that could generate PTP for my retirement accounts; on the other hand there are certain other investments that have complex tax reporting, but don't generate UBTI, that I would preferably hold in my retirement accounts. The UNG and USO that have been discussed at length in this forum, along with some grantor-trust precious metals securities, are among those.
Thanks for that information, Tom.
--ron
------------------------------------- I am new to this issue - own ung in a retirement account. Can you tell me why ung does not fall within the reportable ptp? Also, if it were reportable, would losses and gains both be reportable?
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