Master Limited Partnerships Held in Retirement Accounts

What do you do if you get a K-1 from a master limited partnership (MLP) and the owner is your IRA or another retirement account? Your IRA would even have its own Federal ID #. The correct thing to do is to provide this form to the plan custodian as your IRA owes any potential  tax and not you personally. Any business income over $1,000 from a MLP is subject to unrelated business tax of 35% even if owned by a tax exempt entity such as your IRA. Passive investment income such as dividends and interest earned by a MLP are not subject to the unrelated business tax.