Skip to main content
Message Font: Serif | Sans-Serif
No. of Recommendations: 1
Sorry, hit submit too soon. With one correction, better formatting, and some additional comments:

Is the $1000 threshold applied to the amount paid to the individual or is it the amount earned by the Company?

The $1000 threshold is per IRA, not per holding within the account. From IRS Pub 598 :

Form 990-T is required if the organization's gross income from unrelated businesses is $1,000 or more. An exempt organization must report income from all its unrelated businesses on a single Form 990-T.

In this case, the 'organization' is the IRA (Individual Retirement Arrangement). So, even if you hold investments producing UBTI in a few accounts at different brokerages, if the total UBTI is more than $1000, your IRA would still be responsible to file, even if each individual account was less than $1000. I would strongly suggest consulting a tax professional if you have this situation.

Print the post  


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.
What was Your Dumbest Investment?
Share it with us -- and learn from others' stories of flubs.
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.