Skip to main content
Message Font: Serif | Sans-Serif
No. of Recommendations: 0
Charli25 asks:

My concern is that if and when I leave this broker how will I handle this tax ? I've asked several other brokers about it and although they would like to have my business they do not handle it like my current broker and they don't seem aware of the requirements. The tax is modest ($30 to $40) but I can see having to hire a CPA to evaluate the K-1 and fill out a 990_T (four page very complex looking form) and pay several hundred dollars to pay a $30 tax. I do my own taxes through Turbo Tax but there is nothing in Turbo Tax that addresses this.

Would appreciate your "take" and advice on this. I'm really surprised that the other brokers I've talked to don't seem knowledgeable and aware of this tax and how it's handled.

I'm not surprised few brokers are knowledgeable on the topic in that it's a tax that doesn't arise that often in the normal course of business. In fact, until I read Roy's (TMF Taxes) article some months back, I didn't know it existed, either. As to how you handle it for reporting purposes, I can't answer as I'm not a tax maven. I'll leave that up to those who really know -- like Roy.

You might wish to post this query over on the Tax Strategies board where the tax experts hang out just in case it takes Roy some time to get over to this board.

Print the post  


What was Your Dumbest Investment?
Share it with us -- and learn from others' stories of flubs.
When Life Gives You Lemons
We all have had hardships and made poor decisions. The important thing is how we respond and grow. Read the story of a Fool who started from nothing, and looks to gain everything.
Contact Us
Contact Customer Service and other Fool departments here.
Work for Fools?
Winner of the Washingtonian great places to work, and Glassdoor #1 Company to Work For 2015! Have access to all of TMF's online and email products for FREE, and be paid for your contributions to TMF! Click the link and start your Fool career.