From the article Smart Tax Planning: Taxes in your IRA? Monday Sept 11, 2000 I learned that some investments in an IRA could generate taxable income. Specifically, Limited Partnerships and LLC's. This from the UBIT. One of the companys I had in my IRA was bought out by Prodigy. A short time later Prodigy and SBC Communications mergered and Prodigy's business and operations are operated by a limited partnership, called Prodigy Communications Limited Partnership, of which Prodigy is the general partner and owns anapproximate 57% interest, and SBC Communications owns an approximate 43% interest. I decided to hold my investment through the bye-out and merger/alliance however I was unaware of the Limited Partnership till recently. From the article it looks as if I should sell this holding. I am at about a 14% loss now and was not that deeply invested to begin with.I held because since its alliance with SBC Communications Inc. Prodigy has become the nation's largest provider of retail DSL broadband Internet access to consumers and small businesses. It seemed that with the problems involved in the buildout of cable and wireless that a small holding in DSL could be profitable. Well, what a bummer when I read this article.Does anyone of more tax knowledge know more on this subject? I have tried the IRS site and couldn't find anything helpful. What it looks like is, that I would be better off to sell my position in case of profits (wow). Need more info before I decide the next move.Comments please and thank youServos
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