I received a letter from the IRS demanding payment for postive lines of UBTI on partnerships held in an IRA. The sums of the partnership K-1 lines of 1-5 were negative. My brokerage filed a 990-T with the net negative number. Lines 3 (Rent) and 5 (Interest) were positive and were over $2,000. IRS is asking for tax payments for the positive numbers. I contacted tax support for the brokerage firm and didn't feel comfortable with the response. On a partnership held in an IRA is UBTI reported as a net number or is tax owed on the positive lines?
