Discussion:UBTI inside an IRA

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Revision as of 02:04, 5 March 2008

Discussion Forum Index --> Advanced Tax Questions --> UBTI inside an IRA
Discussion Forum Index --> Tax Questions --> UBTI inside an IRA

Dusty (talk|edits) said:

5 March 2008
Ok, I searched the forum and I can not find the answer to my question.

I have a client who opened a self directed IRA. My client directed the custodian of the IRA to invest in a Tax Sheltered Oil Rig partnership. The partnership is sending a K1 to my client. The partners Identifying Number is the number for the custodian of the IRA. They have UBTI and they are taking money out of the IRA to pay for the UBTI. My client wants to deduct the UBTI on his taxes and put the K1 information on his tax return.

I do not believe he can put this information on his personal return as the Identifying Number on the K1 and UBTI is the custodian of the IRA not his identifying Number. Can anyone point me in the right direction here?

Thanks,

Dusty

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