Hi,all, I just read last year's post that said the ung does not generate ubt for a retirement account. How was that determined? If it did generate ubt in a retirement account, would both gains and losses be reportable? Also, reading the k-1 instructions, I am understanding that unless the position has been entirely liquidated by years end, no losses would be reported - only an adjustment to basis. Is this correct? Margo
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Read the prospectus from the USNG Fund.
If it generated UBI you would see the amount on your K-1 with a code of V.
It is irrelevant for holdings inside a tax-deferred retirement account. The only thing relevant for such an account is whether the account has a cost basis and whether you took a distribution.
Gains are reportable if they exceed some threshold, which I think is $1,000 for ALL of your UBIT. If you are under that, you don't need to report anything in an IRA.
Losses are not reportable usually. However, they can be used to offset gains if you go over the $1,000 threshold, and, if I recall correctly, can be carried forward; so hold on to your K1's.
for ALL of your UBIT. If you are under that, you don't need to report anything in an IRA.
if you go over the $1,000 threshold, and, if I recall correctly, can be carried forward; so hold on to your K1's.
Is the $1000 threshold for the year or is it cumulative year to year for the life of the holding? Phil
My understanding is that the $1,000 is per year.
Losses can accumulate and I am not sure if you have to file each year in order to be able to claim the losses in a subsequent year, or what the limitations may be.
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