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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.

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