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Get your taxes done using TurboTax
Unrelated Business Income (UBI) is determined on an annual basis. It is not cumulative. If you own shares of a Limited Partnership in an IRA account (Traditional or Roth) your sale of those partnership shares is not a taxable event. You won't incur any taxes within the account on your disposition of them, regardless of how long you've held them. UBI has nothing to do with your sales activity of shares of the LP. There is nothing you do with your shares that will trigger UBI, it's based upon the activities of the LP. The sale of LPs can trigger ordinary income in addition to capital gains, but only in Non-Qualified (taxable) accounts. If your position in the LP is approximately $2,000, it is highly unlikely you will have UBI in excess of $1,000; however, if you want to divest yourself of the LP, you can sell it all at once and it won't have any impact on any potential UBI. Nor will it result in a taxable gain (or loss).
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