How do I exclude K-1 income reported for non-taxable IRA Account
I am 45years old and have a traditional IRA account from which I frequently use to trades stocks and index funds. I received a K-1 form from one of these funds showing income in Box 10C.
I did not receive any proceeds nor did I take a distribution from this account.
Do I have to send a letter to the IRS with an explanation as to why this K-1 income amount was excluded as income on my personal income tax return?
How do I exclude this income on my personal income tax return?
Tax return was electronically filed before K-1 was received.
Permalink Submitted by Alan - IRA critic on Mon, 2016-03-28 16:46
What tax form shows on the top of the K 1 besides the K 1? Or what is the definition for 10C?
Permalink Submitted by Suresh Heeralall on Wed, 2016-03-30 13:13
No Other tax form shows up on top of K-1, line 10C of K-1 is other income.
Permalink Submitted by David Mertz on Wed, 2016-03-30 16:00
This sounds like an entry on Schedule K-1 (Form 1120S) for Section 1256 contracts and straddles.
Permalink Submitted by Alan - IRA critic on Wed, 2016-03-30 19:34
I think this K1 was issued on your IRA in error, and you can safely ignore it. This link concurs:https://www.quora.com/Should-I-report-section-1256-contract-straddles-gain-that-was-realized-on-an-IRA-account