Taxpayer has a Partner K-1 and type of entity is "IRA/SEP/Keogh and is referred as a IRA Rollover. How does an IRA rollover for a taxpayer become a partnership type of entity? If taxpayer rolled over his IRA into a certain new type of investment, would it not still be an IRA that does not affect tax status with losses or income until funds are withdrawn? Would appreciate your help in making me understand!!
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Ifa
Sounds like the IRA owns an interest in a partnership among its holdings. -
I see these from time to time
The ones that I have seen are usually where the IRA account is at a brokerage house, and the clients broker takes part of the IRA funds and invests into a Limited Partnership. The client then receives a K-1 at the end of the year from the partnership, rather than being reported on his regular IRA brokerage statement. The titling on the K-1 is the taxpayer's name, with an IRA notation.
It would still be a rollover or IRA investment and would not have to be reported until liquidated or distributed.
SandyComment
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K-1 Partnership
Sandy, if there are withdrawls and distributions noted of $10,587, does that mean the broker withdrew and invested elsewhere rather than the taxpayer actually receiving the money?
Also, within the K-1 documentation, there is a 2008 sales scheudle showing a breakdown of units disposed with acquisition date and disposition date and cumulative adjustment to tax basis. Would the profit or loss for the dispositions already be included in K-1 or does a schedule D need to be filed? The sales schedule provided does not include all needed info to complete schedule D.Comment
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Ira
You will probably have to contact the taxpayer or broker to have them provide you with the info on the disposition of the transaction and see if the monies were then transferred to another qualified rollover account.
I always ask my clients for the rollover account info to be sure that the rollover actually was completed.
SandyComment
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K-1 Partnership
I was told by another tax preparer that being K-1 was from an IRA account that I do not file the K-1 info on tax return; the K-1 is for informational purposes. Is this correct?? While it makes sense if it is an IRA, nothing is claimed until distributions are withdrawn, just want to make sure which is the correct way to handle.Comment
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The reason they send these to the taxpayer is because if the income is over $1,000 then a special return has to be done. It is the taxpayer's responsibility! I have a couple like this and EdJones said they would do the return if it gets to that point. (Since they are the ones that sold part of the IRA to a partnership.)JGComment
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K-1 Partnership
How would I determine if K-1 needs to be included in tax return or not?Comment
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If it says "IRA" in the title it does not go on the tax return. If you are in doubt, call the broker, etc that handles the IRA.JGComment
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