Questions to Ask Before Making a Self-Directed IRA Investment

One should consider the IRS prohibited transaction rules, the UBTI tax rules, and how best to structure the investment.
How is UBTI Applied to an IRA that Invests in a Real Estate Syndicate?

UBTI presents a unique challenge for Self-Directed IRA investors in real estate syndicates, particularly when debt financing is involved.
Is My Real Estate IRA Investment Considered Debt or Equity?

It’s imperative to determine whether or not your Self-Directed IRA real estate investment is considered debt or equity to maximize tax efficiency.
Understanding UBTI in a Retirement Account: What Investors Need to Know

Understanding UBTI and how it affects retirement accounts, the types of investments that can trigger the tax, and strategies to manage or avoid UBTI-related taxes will be discussed in the following.
Self-Directed IRA Rules Investors Commonly Break

Self-directed IRA rules do exist, and it’s important to know these rules to keep your IRA IRS compliant. Such rules include prohibited investments and disqualified persons.
UBTI Rules and House Flipping with Retirement Accounts

It’s easy to flip homes or engage in a real estate transaction with a Solo 401(k) plan. It’s as easy as writing a check from your plan bank account or wiring funds. Because you are the trustee of the Solo 401(k) – also known as the Individual 401(k) or Self-Directed 401(k) plan – you have […]
Tax Distribution – Secret UBTI Weapon for Self-Directed IRA Investors

A tax distribution assists the members in meeting their federal and state income tax obligations with respect to their allocated net profits, including “phantom income”
Airbnb in Your IRA – Will it Trigger UBTI?

Holding an Airbnb in your IRA makes for an interesting investment choice as it provides a nice stream of income, however, beware of the UBTI rules.
Does a Solo 401k Have the Same UBTI Rules as a Self Directed IRA LLC?

Yes and No. Like an IRA, the tax advantage of a Solo 401(k) Plan is that income is tax-free until distributed. In general, an exempt organization is not taxed on its income from an activity that is substantially related to the charitable, educational, or other purpose that is the basis for the organization’s exemption. Such […]
UBIT Blocker Corporation & Your IRA Investment

There are certain investments that an IRA or 401(k) can make that are taxable. The UBIT blocker corporation can help reduce or eliminate those taxes.