Insights: UDFI

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UBTI and UDFI Tax Considerations for IRA Owners

IRAs are a great shelter for growing investments tax-deferred (in a Traditional IRA) or even tax-free (in a Roth IRA). However, there are instances in which the income produced by...

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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...

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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...

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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...

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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...

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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...

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