Message Font: Serif | Sans-Serif
 
No. of Recommendations: 0
Can anyone tell me if a business development company (ACAS, AINV) creates Unrelated Business Income Tax problems in an IRA? I know MLPs will, but am unsure about these.

One of the primary purposes of a BDC is to fund/obtain funding for other smaller businesses. I cannot see them creating a whole lot of UBI.

Are you confusing Unrelated Business Income (UBI) with unrealized business income that BDCs (ACAS, AINV) generate. I believe, subject to correction, that this comes from how a BDC structures the financing of one or more of its business deals.


Hohum
Print the post  

Announcements

Disclaimer:
In accordance with IRS Circular 230, you cannot use the contents of any post on The Motley Fool's message boards to avoid tax-related penalties under the Internal Revenue Code or applicable state or local tax law provisions.
When Life Gives You Lemons
We all have had hardships and made poor decisions. The important thing is how we respond and grow. Read the story of a Fool who started from nothing, and looks to gain everything.
Contact Us
Contact Customer Service and other Fool departments here.
Work for Fools?
Winner of the Washingtonian great places to work, and Glassdoor #1 Company to Work For 2015! Have access to all of TMF's online and email products for FREE, and be paid for your contributions to TMF! Click the link and start your Fool career.