Common advice is to keep partnership-type investments out of IRAs for fear of Unrelated Business Taxable Income that can trigger taxes due from an IRA. Now that 2016 partnership K-1 forms are arriving, I'm reminded I've never seen one that generates positive UBTI (code V in box 20). The few investments of this type I have are energy related, and they routinely show a negative UBTI.
Is there a type of partnership that often generates positive UBTI? If I acquire one of those, can I offset it (for tax purposes) via the negative UBTI of others?
Is there a type of partnership that often generates positive UBTI? If I acquire one of those, can I offset it (for tax purposes) via the negative UBTI of others?