Self Directed IRAs

[chapguy19]

Cx delivered two 1065 K-1s to my office, both of which lost money. Two different EINs.

He labeled them as "Self Directed IRAs". Box I1 indicates the entity is an "IRA".

How do I code the K-1s inside of ProConnect?

Thanks in advance, Christopher

[sjrcpa · Accepted solution]

You don't. The IRA may have to file a 990-T if those K-1s have sufficient Unrelated Business Income.

[qbteachmt]

The loss is not a pass through loss. However, if there was UBTI in the past (or future), this can be used to offset within the IRA. It never goes to the Form 1040.

I found you an article that might be helpful:

https://greenleaftrust.com/missives/self-directed-iras-tax-losses/