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        • What Allocation of Income is Subject to UBIT?
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UBIT Professional
  • Home
  • UBIT Information
    • UBIT Explained: An Overview
      • What Is UBIT?
      • When Does UBIT Occur?
      • Why Do I Have to File in an IRA
      • Isn’t UBIT a Double Taxation?
      • Why You Should be Glad to File
      • Turning a Net Operating Loss into a Gain
      • What Tax Schedule to Follow?
      • Understanding the Process
      • FAQs
    • Real Estate IRAs and UBIT
      • Your Real Estate IRA Investment Options
      • Why Debt Financing with a Real Estate IRA Investment Can be Beneficial
      • Obtaining Non-Recourse Loans and Finding Non-Recourse Lenders
      • Real Estate Frequently Asked Questions
        • What Allocation of Income is Subject to UBIT?
        • How does Flipping or Wholesaling Real Estate Relate to UBIT?
    • Entities and UBIT
      • Why Does my IRA Have to Pay Taxes when Investing in a LP or LLC?
      • When Does my IRA Have to Pay UBIT When Investing in a LP or LLC?
    • Financial Advisor/CPA Overview
      • Calculating, Filing and Paying UBIT
      • UBIT at the State Level
      • UBIT and Multiple IRAs
  • 990-T Filing Solutions
  • About Us
  • Testimonials
  • Resources
  • Contact Us

UBIT Information

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    UBIT, UDFI, and UBTI
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Unrelated Business Income Tax (UBIT)

Unrelated Business Income Tax (UBIT) often elicits concern and confusion from investors or potential investors. However, many of the concerns are based on misconceptions – or misinformation – regarding the tax. It is important to understand as an investor, an investment sponsor, or a CPA/Tax Professional the implications of UBTI and how it operates within a portfolio.

Since 1974, when IRAs were established under the Employee Retirement Income Security Act of 1974 (ERISA), the IRS and Congress have been updating the rules established around IRAs. With a benefit like tax-free or tax-deferred growth, there also will be a set of rules and regulations that must be followed in order to take advantage of the benefit.

One of those rules is that certain investment strategies trigger the unrelated business income tax (UBIT), even though the funds are invested in a tax-exempt account.

Please browse our website, download our guides and video trainings, and contact us if you would like to speak to a UBIT Professional specialist. We are here to help you understand UBIT, how it may apply to your situation, and are available to assist with your tax preparation needs.

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UBIT Professional LLC specializes in Unrelated Business Income Tax and Form 990-T preparation. UBIT Professional LLC is an affiliate of Equity Trust Company, a passive custodian specializing in the custody of alternative investment IRAs. Any information communicated by UBIT Professional LLC or Equity Trust Company should not be construed as tax, legal or investment advice. Equity Trust Company, UBIT Professional LLC, and all their affiliates, representatives and officers do not provide investment, legal or tax advice. Whenever making a financial decision, please consult with your tax attorney, financial or accounting professional.

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