Could Your IRA Investments be Taxed?

By Elsie Dudukovich0 Comments

Unrelated Business Income Tax (UBIT) as indicated in Internal Revenue Code 511, is possible if your IRA is invested in a Limited Partnership (LP), Limited Liability Company (LLC), or any investment that takes on debt financing and/or is involved in an unrelated business.
 
Equity Trust offers educational resources on understanding UBIT. 
 
In this five-minute video, you will learn:
  • When UBIT occurs
  • How unrelated debt financed income (UDFI) is calculated
  • When operational businesses such as LLCs or LPs incur UBIT
  • How the filing process works
  • In this 10-minute video, UBIT will be covered in greater detail and you will learn:
  • Your options if you suffer a net operating loss (NOL) or have less than $1,000 in unrelated business taxable income
  • The ability to write off expenses and depreciation for rental properties that incur UBIT within an IRA
  • The trust tax rates that your IRA is taxed when it incurs UBIT
  • Proforma analysis of UBIT for a debt-financed real estate property
  • The 990-T filing process
  • Why operational businesses incur UBIT and how the process works
     
For more information, visit additional resources here.