UBTI and UDFI Tax Considerations for IRA Owners
Revised on April 10, 2020 due to new guidance from IRS Notice 2020-23: Additional Relief for Taxpayers Affected by Ongoing Coronavirus Disease 2019 Pandemic, which, in part, extends the Form...
Tax Basics for Self-Directed IRAs
You’ve probably heard that investing in something called a “self-directed IRA” can save you money on taxes and open the door to a wider range of asset classes in your...
When an IRA Incurs UBTI or UDFI
Investing in a self-directed IRA has many advantages, including the valuable combination of two key benefits: 1. Tax deferral on investment earnings 2. Broad array of alternative investment options Alternative...
Understanding Unrelated Debt-Financed Income in an IRA
In Part 1 of Understanding Unrelated Business Taxable Income, we discussed UBTI. The second type of UBTI that a self-directed IRA may generate is unrelated debt-financed income or UDFI. UDFI...
Investing in Real Estate Using a Self-Directed IRA
Purchasing real estate using a self-directed IRA is growing in popularity, despite it being the lesser known of the IRA options. In order to open one, an owner must hire...
What To Do When An IRA-Owned Asset Generates Unrelated Business Taxable Income (UBTI)
If you own an asset in your individual retirement account (IRA) which generates unrelated business taxable income (UBTI), including unrelated debt-financed income (UDFI), your IRA account may be subject to...
