K1 inside a IRA

[superman]

Client has a K1 inside a IRA are the losses deductiable on the 1040? They are showing up on the front side of the 1040 but it just does not seem right that they should get a deduction on the 1040 with a IRA. Any guideance would be great.

Superman

[Maribeth]

There is nothing reportable on the 1040 from the IRA's k-1. The K-1 is simply the investment fulfilling its reporting requirement. Same as an IRA with interest or dividend income. This just happens to be a partnership.

Maribeth

[ChEAr$]

Client has a K1 inside a IRA are the losses deductiable on the 1040? They are showing up on the front side of the 1040 but it just does not seem right that they should get a deduction on the 1040 with a IRA. Any guideance would be great.

Superman

One thing we have to be on watch for is trusting software to do it all. Of course there is a K1 worksheet in your software, but that doesn't mean that all K1's have to be
entered. Knowing that this one stems from an IRA puts you on notice not to do a
dadburned thing with it except stuff it out of the way in client's folder.

[superman]

thanks

Thanks for the info glad that was caught before it went over.