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Elroy Jetson

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Elroy Jetson

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Re: cgavin5 post# 80210

Wednesday, 01/22/2020 2:27:55 PM

Wednesday, January 22, 2020 2:27:55 PM

Post# of 109987
There's a $1,000 per year limit on UBTI (Unrelated Business Taxable Income) for each tax free account.

https://www.fool.com/knowledge-center/tax-issues-for-iras-with-mlps.aspx

Go over $1,000 in total UBTI from partnerships any tax free account and your brokerage will charge you $200 or so to file a Form-990T and withhold taxes on the tax due.

The problem is the amount of UBTI declared is not under your control and not predictable. I know a number of investors are soured by a one time UBTI distribution from EPD.

Fidelity makes you read and agree to a warning of this possibility before you place an order for a partnership in a tax-free account.


I've been investing since I was 16. It pays to know the rules of a game before you play.

We've run out of other people's Social Security taxes needed to subsidize our low income tax rates.

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