LouD Posted February 28, 2009 Report Share Posted February 28, 2009 I have a client that has invested some of his IRA in a private equity LP that apparantly owns several profitable manufacturing companies. Clients IRA custodian is saying that if there is unrelated business income greater than $1,000, it will have a taxable affect on the IRA and taxes will need to be paid out of the IRA. Based on client's ownership percentage of the private equity fund and the projected profits of the companies within the fund, they will be over the $1,000 for 2008 so there will be a taxable event. Will the total unrelated business income essentially be the ordinary income that shows up in Box 1 of the K-1? Quote Link to comment Share on other sites More sharing options...
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