K-1 in IRA

[Guest chick]

I received a K-1 for a stock I have in an IRA at Fidelity Investments. It is an LP which I do understand has tax possibilities in an IRA. My understanding was that if UBTI exceeds $1000, it is taxable. Is that correct? Probobly not the smartest thing I did buy in this in an IRA but did not expect the UBTI to exceed $1000 and my dsitributions for 2008 was 978.00. The K-1 form I was sent by the company shows Ordinary Business Income of 1009. Does this mean I must file a return with IRS and that I have exceeded the UBTI by $9.00?

[Guest mjb]

I received a K-1 for a stock I have in an IRA at Fidelity Investments. It is an LP which I do understand has tax possibilities in an IRA. My understanding was that if UBTI exceeds $1000, it is taxable. Is that correct? Probobly not the smartest thing I did buy in this in an IRA but did not expect the UBTI to exceed $1000 and my dsitributions for 2008 was 978.00. The K-1 form I was sent by the company shows Ordinary Business Income of 1009. Does this mean I must file a return with IRS and that I have exceeded the UBTI by $9.00?

See IRS form 990-T and instructions