UBTI stands for unrelated business taxable income. It’s the tax placed on the income earned from an unrelated business, regardless of the tax filing status. How UBTI works For our example, say an investor were to use their IRA to fund and start up a small business like a yoga studio. A yoga studio is a business not necessarily related to the primary principle of […]
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A Real Estate Investment Resource you Haven’t Yet Tapped
Real estate is one of the most popular alternative assets when an investor wants to shy away from the traditional avenues like bonds and stocks. Regardless of its popularity, it’s not necessarily accessible to everyone, namely because the amount needed up front is steep. What more and more retirement savers are discovering is that with […]
FAQ on UBIT–Unrelated Business Income Tax and IRAs
There’s a lot of misconception when it comes to UBIT, and that’s because it can sound daunting and scary when taxes are involved. Understandably. But there’s no reason to fret, it’s really not as scary as it sounds. One reason that it might be confusing is that when we think of self-directed IRAs, we think […]