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Subject:  Re: K-1 question Date:  3/15/2018  1:42 PM
Author:  Wradical Number:  127269 of 132797

Anyways, if someone happens to know off the top of their head... in Part III-Partner's Share of Current Year Income, Deductions, Credits, and Other Items, section 20, I have code Z1 Gross Reciepts for UBTI, and code Z2 Gross Deduction for UBTI.
You can safely ignore that particular code. It is for tax-exempt organizations who may have invested in the partnership. They may need to pay some tax if they have too much income from these kinds of partnerships.

I'd add the caution - that's true if you own the partnership investment personally, and not in your IRA or other retirement account, e.g., a self-directed 401(k) or 403(b).

If it is in a retirement plan, the UBTI rules do apply, and if you have over $1,000 of positive UBTI
you can be subject to the tax, which is at the income rate applicable to trusts. (Corporate rates for exempt orgs.)

Worse, since the limited partnerships in question are usually publicly traded, the PTP passive loss rules apply, so you can't offset income in one partnership with losses from another.

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