IRA invested in Limited Partnership

[Gail in Virginia]

For some reason, this year a lot of my customers are receiving K-1's on their IRA account. This must be the latest hot investment. I have one that has income reported in box 20 as Unrelated Business Taxable Income. Does this have any affect on their taxes, or since it is in an IRA can I ignore it?

This same K-1 has sent a Canadian form T5013 showing 575 CAD income from the limited partnership. Do I have to file a Canadian return and report this, or does the fact that it is an IRA affect the taxation of a non-resident?

Please help someone - I am looking for answers but this is too late in the season for me to think straight about something as unusual as this (at least in my practice.)

[Lion EA]

The IRA has unrelated taxable income and foreign income to report on it's return. Have your client contact his plan administrator to make sure a return is being filed, if necessary.

[Bart]

The IRA has unrelated taxable income and foreign income to report on it's return. Have your client contact his plan administrator to make sure a return is being filed, if necessary.

Lion

Your son is getting married 100110 which looks like some secret binary code. Or the fact that 100110 = 38. Long marriage.

[Lion EA]

I know. They wouldn't get engaged until they found a date they liked! They'll get married that Friday night but are hosting what they call the re-enactment and photo op on Saturday, followed by a reception and even a brunch Sunday morning (they're out in the boonies, so everyone will be from out of town).

[Gail in Virginia]

Lion, I have never had an IRA that had to file a return, nor do most of my IRA's have a plan administrator that I am aware of. That is the type of title I am used to seeing with qualified plans, not with self-directed IRA accounts at a brokerage.

[Lion EA]

My parents were married 10-20-40 and my dad's birthday is the same as Rob's fiancee's, 19 July. Maybe there is something spooky in the numbers! Although, Rob's fiancee's last name is Schwartz, and our daughter's boyfriend's is Swartz; so it's the names, too!

[JRS]

For some reason, this year a lot of my customers are receiving K-1's on their IRA account. This must be the latest hot investment. I have one that has income reported in box 20 as Unrelated Business Taxable Income. Does this have any affect on their taxes, or since it is in an IRA can I ignore it?

This same K-1 has sent a Canadian form T5013 showing 575 CAD income from the limited partnership. Do I have to file a Canadian return and report this, or does the fact that it is an IRA affect the taxation of a non-resident?

Please help someone - I am looking for answers but this is too late in the season for me to think straight about something as unusual as this (at least in my practice.)

Partnerships in IRA are subject a tax on the "UBIT" (Unrelated Business income tax) if it exceeds $1000. I have yet to see this happen. The brokerage who sold the units, in most cases, will take care of the taxes if necessary. It is found in box 20 with the code V.

[Kea]

My parents were married 10-20-40 and my dad's birthday is the same as Rob's fiancee's, 19 July. Maybe there is something spooky in the numbers! Although, Rob's fiancee's last name is Schwartz, and our daughter's boyfriend's is Swartz; so it's the names, too!

They don't want to go for 10-10-10? At least it's still on a weekend. Sunday might not work as well as a Friday, I guess. My parents married 5-7-55. I kept asking why they didn't get married 2 days earlier. But they liked the Saturday wedding better than being on a Thursday. Their loss. And my aunt was born 11-1-11. Great birthday!!

[Lion EA]

Well, they're getting married by a JP Friday night 10-01-10 with just family/close friends. Then the "re-enactment" is Saturday the 2nd without all the nervousness, per them. I had wondered about 10-10-10 also, but that doesn't give them a chance to marry the night before so the real wedding date is the one they want. And, they run an inn in the mountains of PA, so 10-10-10 is part of a 3-day holiday in leaf-peeping season. Hey, I'm just happy they're getting married; it could be a Wednesday for all I care!

[Kea]

I agree that 10-01-10 is good, too. You can't always schedule these things for the best date around. (My anniversary has no pattern to it at all, but it didn't stop me from getting married! 25 years ago this June.)

[Margaret CPA in OH]

It is helpful to be aware of current events, however. When my husband and I married 31 years ago, it was a Sunday afternoon with the reception in our home. As the time drew near, several people were asking if we had a television and would it be on. After scratching our heads for a few days, we realized it was Super Bowl Sunday, Jan. 21, 1979. We were not football fans so it wasn't on our radar screens but clearly on the minds a some. We are grateful that they chose to attend and we did have a television on.