If you own a self-directed IRA or you’re looking to open one, you may come across some new phrases, such as UBIT and UDFI. At Accuplan, we want you as informed as possible so you can make wise investment decisions with your self-directed IRA, which is why we’ve covered the information you need to know about these taxes below. What Are UBIT Taxes? Unrelated […]
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 […]