What Type of Self Directed IRA Investments are Subject to UBTI?

July 31st, 2017

In general, most passive investments that your Self-Directed IRA LLC might invest in are exempt from UBTI. Some examples of exempt type of income include: interest from loans, dividends, annuities, royalties, most rentals from real estate, and gains/losses from the sale of real estate. When an exempt organization such as an IRA undertakes any development […]

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Beware The UBTI Rule When Investing In Real Estate With Retirement Funds

December 28th, 2016

This article originally appeared on Forbes.com – Since the creation of individual retirement accounts (“IRAs”) the Internal Revenue Service (“IRS”) has always permitted an IRA or other retirement account to purchase, hold, or flip real estate.   In fact, it states it right on the IRS website. By using a Self-Directed IRA or 401(k) plan, […]

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What Real Estate Transactions are Subject to the UBTI Tax

October 31st, 2016

It has always been permissible for you to use Solo 401(k) and Self Directed IRA funds to invest in real estate.  One question is what factors do the IRS and Courts use to determine if a real estate transaction is subject to the Unrelated Business Taxable Income rules. In Mauldin v. Comr. 195 F.2d 714 […]

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Individual 401(k) Transactions that May Trigger UBTI Tax

August 24th, 2016

In general, most passive investments that your Solo 401(k) Plan might invest in are exempt from UBTI. Some examples of exempt type of income include: interest from loans, dividends, annuities, royalties, most rentals from real estate, and gains/losses from the sale of real estate. When an exempt organization such as an 401(k) Plan undertakes any […]

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SEC Crowdfunding Rules May Trigger Unintended Tax Consequences

May 17th, 2016

This article originally appeared on Forbes.com, written by our own Adam Bergman: Beginning on May 16, 2016, small businesses and start-ups will be able to sell shares to the American general public on crowdfunding portals.  Under the Securities and Exchange Commission crowdfunding rules, an eligible company may raise up to $1 million on the internet […]

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Can You Invest in Options with a Solo 401k

November 4th, 2015

When it comes to making investments with a Solo 401(k) Plan, the IRS generally does not tell you what you can invest in, only what you cannot invest in.  The types of investments that are not permitted to be made using retirement funds is outlined in Internal Revenue Code Section 408 and 4975.  These rules […]

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How to Invest in Options with a Self Directed IRA

September 18th, 2015

When it comes to making investments with a self-directed IRA LLC, the IRS generally does not tell you what you can invest in, only what you cannot invest in.  The types of investments that are not permitted to be made using retirement funds is outlined in Internal Revenue Code Section 408 and 4975.  These rules […]

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Using a Solo 401k Plan, what transactions may trigger the UBTI tax?

August 12th, 2015

In general, most passive investments that your Solo 401(k) Plan might invest in are exempt from UBTI. Some examples of exempt type of income include: interest from loans, dividends, annuities, royalties, most rentals from real estate, and gains/losses from the sale of real estate. When an exempt organization such as an 401(k) Plan undertakes any […]

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