Message Font: Serif | Sans-Serif
No. of Recommendations: 2
It showed me that a few positions will essentially never be sold (i.e. basis is essentially zero) unless other tax situations happen that allow them to be....but in general I have the time to gradually reduce the other positions by small annual sales that generate less than $1000/year in UBTI

The issue is, because your IRA is still a partner in the MLP, you may not be able to realize the gain unless you sell out of the entire position, or, if you purchased in smaller lots, the entire lot. I would suggest consulting a UBTI tax specialist before embarking on this path.

Do you happen to know if negative UBTI (i.e. UBTI losses) can be used to offset UBTI gains?

You can carry forward UBTI losses to help offset gains, but only if the 990-T is filed for the year(s) in which the losses occur. Losses in the same account in the same year can also offset gains.

Print the post  


In accordance with IRS Circular 230, you cannot use the contents of any post on The Motley Fool's message boards to avoid tax-related penalties under the Internal Revenue Code or applicable state or local tax law provisions.
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.