Posts Tagged ‘ UBIT ’

Understanding Unrelated Debt Financed Income in an IRA

December 28th, 2011 | Posted in IRA Investments, IRA Rules, IRA Tax Laws | No Comments »

Part 2: UDFI In Part 1 of Understanding Unrelated Business Taxable Income, we discussed UBIT. The second type of UBTI that a self directed IRA may generate is Unrelated Debt Financed Income, or UDFI. UDFI may be generated when a tax exempt or tax deferred entity owns property that is debt financed. If an IRA [...]

Understanding Unrelated Business Taxable Income (UBTI) in an IRA

December 27th, 2011 | Posted in IRA Investments, IRA Rules, IRA Tax Laws | No Comments »

Part 1: UBTI Making investments with funds from a self directed IRA provides a great tax advantage in that most income is tax free until distribution. However, there are certain situations in which a self directed IRA can generate taxable income in the form of Unrelated Business Taxable Income (UBTI) or Unrelated Debt-Financed Income (UDFI). [...]

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