sec 751 income from a ira
my client got sec 751 income from his ira in the form of a k-1
i thought ira could do investments, and isn’t the sale of partnership interest still an investment
why should a k-1 pass out income
my client got sec 751 income from his ira in the form of a k-1
i thought ira could do investments, and isn’t the sale of partnership interest still an investment
why should a k-1 pass out income
Permalink Submitted by Alan - IRA critic on Tue, 2022-07-26 22:52
Is this amount entered in Box 20V of the K-1? If so, it may be UBTI which requires the IRA to prepare a 990 T return and pay some tax. Sec 751 involves converting ordinary income into cap gains, and IRAs do not produce cap gains, therefore I doubt that Sec 751 should apply to IRAs or should generate a K1 for the IRA.
Permalink Submitted by [email protected] on Tue, 2022-07-26 23:04
thanks again