What are the filing requirements for UBTI?

In computing UBTI, a specific deduction of $1,000 is permitted. If a Self-Directed IRA LLC has gross UBTI of $1,000 or more during its fiscal year, it must file a completed IRS Form 990-T to report such income and pay any tax due. The Form 990-T is due at the same time as the Form 990, however, if the Self Directed IRA LLC expects its annual UBIT (after certain adjustments) to be $500 or more, then it must make estimated tax payments throughout the year. The Form 990-T is not subject to public disclosure like the Form 990.

Please contact one of our Self Directed IRA Experts at 800-472-0646 for more information.