UBTI
We have a new client with a number of non-publically traded “REITs” & BDCA’s in their IRA’s
Some are funds with actual real estate investments and some funds with only loans.
What should I be looking for to make sure they don’t have too much UBTI that would trigger a problem.
Permalink Submitted by Alan - IRA critic on Wed, 2016-05-04 21:21
A total of 1,000 or more of UBTI from the investments as shown on the K 1 forms will trigger the 990 T filing. This link explains the process. In many cases your self directed IRA custodian will file the 990 T for you. Taxes must be paid directly out of the IRA account. https://www.trustetc.com/self-directed-ira/rules/ubit