10SorTAX Posted March 14, 2008 Report Posted March 14, 2008 Taxpayer received a K1 for a partnership he has in his IRA. K1 is issued to "taxpayer's name, Charles Schwab Cust, IRA Contributory," and ID# is an EIN, not taxpayer's SSN. Type of entity for this partner is IRA/SEP/Keogh. I believe I do not enter this on his 1040 and am looking for confirmation or correction of this thought. There is a business loss in box 1 so I don't want to miss anything beneficial to my client of course, but it seems it does not apply since it is in his IRA. Any thoughts? Thanks! Quote
cred65 Posted March 14, 2008 Report Posted March 14, 2008 I have the same situation and the Feds sent the client a notice of non-reported income for 2005. It took some detailed correspondence and a few letters to correct the matter. So be prepared. Quote
BulldogTom Posted March 14, 2008 Report Posted March 14, 2008 I heard about something where you put a company into an IRA to avoid any tax on the Income while building equity for retirement. Is this what is going on in these cases? Otherwise, why are your clients doing this? Are these legitimate investments in a partnership? The scheme sounded too good to be true, besides being very risky for your retirement money. Tom Lodi, CA Quote
michaelmars Posted March 14, 2008 Report Posted March 14, 2008 USUALLY its publicaly traded partnerships Quote
10SorTAX Posted March 15, 2008 Author Report Posted March 15, 2008 Yes, this is a publicly traded partnership. Thanks very much for the confirmation of how to treat (ignore) this. Quote
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