Final K-1 Partnership - IRA/SEP/KEOGH

[BobrLC]

When inputting information on K-1 page in Pro Series, when I checked box I2, I received error message from Pro Series indicating since the partnership return indicated that this return was a IRA/Sep/Keogh Plan as indicated on line I1, that this Form should not be entered on clients individual income tax return.

OK, what happens to all the supplemental information attached on K-1 Part III side of the form indicating entries in boxes 1 to 22  where income/loss/deductions entries should be entered on as well as supplemental K-1 information page 2.  Seems no direct reference to K-1 if I place entries on 1040.

This partnership was dissolved in 2020.

Thanks for Reply

[sjrcpa]

A Partnership interest held by an IRA does not get reported on a  1040.

If any reporting is needed, the IRA custodian files Form 990-T.

[BobrLC]

Thanks for your reply.

I was looking at the idea that taxpayer lost on this deal and looks like he is unable to deduct his lost as this plan lost him monies.

[Just-Lisa-Now-]

Lots of IRAs lose money, investments don't always pay off.

[BobrLC]

Thanks for your reply

[sjrcpa]

You're welcome.

Losses on investments inside IRAs are not deductible. Also, gains on assets in IRAs are not taxable.

[NJGlover]

Hello,

I have shares in Sunoco LP. I received a K-1 from Sunoco and when I went to add the K-1 to my return in TurboTax it indicated that since the K-1 indicated the partnership was in a IRA/SEP/KEOH and the I2 box was checked that the K-1 was not necessary and would be deleted. I have read that Master Limited Partnerships that generate more than $1,000 in income are immediately taxable, even in an IRA. I received about $1,200 in dividends from the partnership in 2020. Was TurboTax correct in deleting the K-1, or should I have filed it with my return? I did not receive anything from my brokerage, just from Sunoco directly. Will I simply pay ordinary income tax on the gains when I withdraw them from the IRA? I don't want to create a mess if I keep earning from this investment and don't pay taxes because TurboTax says I don't have to. I can liquidate the investment and move it into a taxable account if that cleans things up. Thanks for your input.

[qbteachmt]

@NJGlover 

"Was TurboTax correct in deleting the K-1"

You should ask this question at the TurboTax forum.

You seem to be lost on the internet.

You’ve come to a Peer User community for Intuit Income Tax Preparation products supporting tax preparation professionals using ProSeries, Proconnect and Lacerte Tax Preparation programs, and you may be looking for support as an individual taxpayer. Please visit the TurboTax Help site for support.

Thanks.