K-1 Form -- IRA Query

[MZB]

In 2011 I invsted $6000 in EUO (Pro Shares Ultra Short Euro Fund).

I received a K-1 Form.

Do I need to do anything with this?

I sold the shares in 2012.

This was done in my Ameritrade IRA account (the money was already in the
account from years earlier.

Mel

[Arthur Kamlet]

For the most part you can ignore, for income tax purposes, what goes on
inside of your IRA. There's a very few exceptions, including buying
securities within an IRA and thereby creating a wash sale in a non-IRA
account.

In your example, in box 20 of the K-1 you could just possibly have
Unrelated Business Taxable Income. If over $1000 you need to notify
your IRA custodian, who will have the responsibility of filing a form
990-T and paying the resulting tax and charging you for the work.
The tax comes out of your IRA.


In the years I have been seeing these schedules I have never seen
one approaching that much UBTI, but I might just lead a sheltered life.
--

ArtKamlet at a o l dot c o m Columbus OH K2PZH