My understanding is that many LPs and MLP’s should not be held in IRAs because they generate unrelated business taxable income (UBTI) which can't be tax-deferred or sheltered. Whenever Uncle Sam hands out a tax break, there are strings attached.
Because of a weird technicality in the law, called Unrelated Business Taxable Income, you shouldn't hold MLPs inside a tax-sheltered retirement account. The IRS will sock you for taxes on any MLP income earned inside a retirement account above $1,000 a year.
I urge you to have your tax preparer look into your situation immediately. Please reread the last sentence of the first paragraph.
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My understanding is that many LPs and MLP’s should not be held in IRAs because they generate unrelated business taxable income (UBTI) which can't be tax-deferred or sheltered. Whenever Uncle Sam hands out a tax break, there are strings attached.
Sep 05 10:54 am
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All Comments by searcher »Why Buy MLPs? [View article]
Because of a weird technicality in the law, called Unrelated Business Taxable Income, you shouldn't hold MLPs inside a tax-sheltered retirement account. The IRS will sock you for taxes on any MLP income earned inside a retirement account above $1,000 a year.
I urge you to have your tax preparer look into your situation immediately. Please reread the last sentence of the first paragraph.