Dave T Posted February 27, 2010 Report Share Posted February 27, 2010 Client called and said he needed to drop off 'some additional tax papers' he got in the mail. He didn't really know anything about it other than the fact that he'd rolled over his 401K to another qualified retirement account. It was a k-1 from a partnership. As I'm inputing the various fields I notice in Part II - Information about the partnership line I - What type of entity is the partner? and it says IRA/SEP/Keough. I've not seem this before and am wondering if the fact that it is within an IRA if I need to do anything with it? Thanks - Dave T Quote Link to comment Share on other sites More sharing options...
Lion EA Posted February 27, 2010 Report Share Posted February 27, 2010 The IRA might need to do something with it, or your client might need someone to file a return for his IRA if it has unconnected (what's the real term I can't remember right now?) income, or maybe the IRA or investment already dealt with it and sent a copy of the K-1 as a courtesy. Quote Link to comment Share on other sites More sharing options...
kcjenkins Posted February 27, 2010 Report Share Posted February 27, 2010 No, if it's within an IRA it's not taxable now. Although when it is eventually sold, it will be ordinary income, because of being in the IRA, where it might have been capital gains had he invested in it personally. Quote Link to comment Share on other sites More sharing options...
JohnH Posted February 27, 2010 Report Share Posted February 27, 2010 This might be a K-1 for Unrelated Business Taxable Income in a Limited Partnership. If so, then if the amount from all Limited Partnerships in all the taxpayers IRAs is over $1,000 you have to obtain a Fed ID# for the IRA and file a Form 990-T because the trustee is dumping that responsibility onto the taxpayer. Quote Link to comment Share on other sites More sharing options...
Lion EA Posted February 27, 2010 Report Share Posted February 27, 2010 Unrelated Business Taxable Income. That's what I couldn't remember. And, I thought the amount was only $1,000. Boy, is my memory fried this tax season! Glad I have the expensive software and good customer service and this wonderful, wonderful board to help me out. Snowing here in CT, so hubby was home underfoot and we lost power for a bit. Think my UPS might not be functioning. Today's clients rescheduled for tomorrow, but I have a whole bookshelf full of drop-offs to work on. Quote Link to comment Share on other sites More sharing options...
JohnH Posted February 27, 2010 Report Share Posted February 27, 2010 Lion: Your memory is fine - better than mine. I originally said $10,000 but that was my error. I edited it after I saw your post. Quote Link to comment Share on other sites More sharing options...
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