Author Topic: De minimis Schedule K1?  (Read 1661 times)

stahleyp

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De minimis Schedule K1?
« on: April 02, 2018, 07:10:15 AM »
Hey guys,

Dumb and careless mistake on my part. I had a few hundred dollars in my Roth and wanted to invest it. I decided to buy 10 shares of OAK. Realizing after the fact that it's a partnership and not a regular security. I sold it about a month later after realizing that I didn't want the tax headache on a $500 investment with a loss of about $3. Oaktree sent me the tax forms. Do I really need to file this? I'm totally okay eating the loss. :P
Paul


BG2008

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Re: De minimis Schedule K1?
« Reply #1 on: April 02, 2018, 08:59:18 AM »
Not tax advice - There is usually a $1,000 exemption on UBTI for IRA accounts. Capital gains and losses typically do not affect your IRA.  Check with your tax professional.   

TwoCitiesCapital

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Re: De minimis Schedule K1?
« Reply #2 on: April 02, 2018, 05:21:27 PM »
Not tax advice - There is usually a $1,000 exemption on UBTI for IRA accounts. Capital gains and losses typically do not affect your IRA.  Check with your tax professional.

This.

I've done this a few times in the past with MLPs/LP units in my Roth. I just made sure the investments were small to do my best to ensure the "income" in any one year would be less than $1,000. Not hard to do when oil/gas/coal were in the dumps and that was mainly what I was buying.

As long as the collective income across all K-1s in that IRA is less than $1,000, you should be fine not filing it.

That's just from my experience -  not a tax professional myself.

stahleyp

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Re: De minimis Schedule K1?
« Reply #3 on: April 03, 2018, 06:34:35 AM »
awesome guys. thanks for the insights!
Paul