Decoding and Understanding Unrelated Business Income Tax (UBIT)
You may have recently received a notice indicating that your IRA may have incurred unrelated business income tax, or UBIT for short. UBIT applies to certain investments within an IRA and needs to be accounted for by filing Form 990-T.
UBIT Education Resources
Would you like to learn more about UBIT, including but not limited to the following:
What is UBIT?
When does it occur?
How does it relate to my IRA investments?
How can I remain compliant?
We have created video training and downloadable reports for you, your tax professional, or other members of your financial team that can be accessed here
Your 3 Options for UBIT Compliance
To assist you in meeting filing requirements, Equity Trust Company is again offering Form 990-T preparation and IRS required electronic payments through the EFTPS (Electronic Federal Tax Payment System) to our clients for their IRAs.
Please select one of the three required options and follow the instructions for the applicable forms referenced below.
You may complete and submit forms to Equity Trust Company at firstname.lastname@example.org
. If your IRA is invested in debt-financed property and/or LLC/LP investment(s), you must select one of the three options and respond prior to the filing deadline to avoid your account being charged a $75 late documentation fee.
1) Request for Equity Trust to Prepare Form 990-T – Please choose the applicable form from the following list:
If this request and all required information is not received prior to March 15, 2019, we cannot guarantee the request will be completed by the filing deadline. Requests received after March 15, 2019 may require an extension at your cost.
2) Form 990-T Filing is Not Required – Please choose the applicable form from the following list:
This option can only be selected if the debt-financed property and/or LLC/LP investment(s) within my account generated less than $1,000 cumulative total of Unrelated Business Taxable Income (UBTI).
3) Other Designated Preparer – Please choose the applicable form from the following list:
Failure to provide Equity Trust Company with this form and a copy of all filed returns by the filing deadline will result in your account being charged a $75 late documentation fee.