The Motley Fool Discussion Boards

Previous Page

Financial Planning / Tax Strategies


Subject:  MLPs in an IRA Date:  7/5/2013  7:44 AM
Author:  TMFHockeypop Number:  118785 of 123036

Sorry if you've discussed this, but in looking at Linn Energy (LINE) on the VALUE HOUNDS board which is kinda a MLP (second + sign):
I also found this article from "Seeking Alpha" that suggests that perhaps a little is OK:

I'm used to Phil's cyber eyeroll but thought I'd open myself up to more widespread ridicule for looking at this. Also, there is disagreement in the comments about whether this can be done in each IRA or perhaps also in differing spousal IRAs. If you've discussed it please point me to the post. THANKS!

A deeper look should be taken because there is rarely tax due. The tax is based on the UBTI shown on line 20V of the K-1 the MLP sends out each year. For many MLPs this amount is negative. Where a positive amount is shown it is combined with the negative amounts for other MLPs owned in the same IRA. The