IRA K-1’s DO NOT get filed for tax purposes

K-1’s have been mailed out and posted electronically, finally. As a friendly reminder most companies deliver K-1’s to regular investment accounts AND IRA or other qualified types of accounts.

BE CAREFUL…IRA/Qualified type of K-1 reporting is not filed on your personal income tax or other tax filing reports. ONLY TAXABLE reporting K-1’s are needed for tax purposes.

You may ask why do they report to me something that is unnecessary?

Great question…No it’s not to confuse us (tax season is especially confusing already) it is to cover their bases. As an example, while many may have a title such as  “John Doe IRA”, which seems easy to determine it is an IRA, what about “John Doe ILIT Trust Qualified Family Fund” ….. That one, as you can see can go either way.

If you or your tax professional have a question on whether to report or not to report, give us a call, we will know as “Donald the Brain” manually adjusts the basis for everyone (taxable and non-taxable) for the most accurate tax and return reporting.

Have a Great Day!

JK