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OP= Original poster, meaning you.

Nothing the matter with owning a master LP in a non-taxable account. Just don't let UBTI go over $1000, and you don't know what it will be until you get that K-1.

If the K-1 was sent to the trustee, then EPD did know it was a non-taxable account. However, obviously they sent it anyway. You do not include the information on your tax return.

I used to have a MEPC preferred in my IRA. It did not generate UBTI and I never did anything with the K-1s, which arrived every March like clockwork. Finally the shares were called, and heeding Ira and Phil's advice I have since kept LPs out of my non-taxable accounts. There are many alternatives and no need to have that particular investment there.

Best wishes, Chris
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