Posts Tagged ‘IRA-LLC’

FAQ on UBIT–Unrelated Business Income Tax and IRAs

Monday, October 23rd, 2017

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 of them being tax-deferred or tax-free. When you make an investment, and that investment makes money, it goes back into your IRA without having to pay taxes on it. So when we’re told that some unexpected tax event has occurred, it can feel like you’ve done something wrong but don’t worry, we got you covered.

Q: Do I have to file for Unrelated Business Income Tax?

A: Probably. Anybody who has made investments that are considered unrelated business activity—like an LLC—and contains debt financing within the tax-advantaged qualifies for UBIT.

Q: Is UBIT considered a prohibited transaction by the IRS?

A: In short, no. It is not illegal nor is it considered a prohibited transaction within retirement accounts. But keep in mind that some transactions that make a UBIT event occur may also have prohibited transaction issues.

Q: When do I have to pay it?

A: Just as with all taxes, April 15th of the following year. So any taxes your IRA qualified for in 2017 is paid next April 15th 2018, paid via IRS Form 990-T.

Q: Does it still apply if I have a Roth IRA?

A: It does, yes. Regardless of the fact that Roth IRAs grows tax-free, and aren’t taxed at retirement, UBIT rules still apply to some investments that are held within the Roth account.

Q: Is it possible to keep any retirement account from paying UBIT?

A: Yes actually, a solo 401K account is not subject to this tax when invested in real estate, but is subject to UBIT when invested in an LLC.


Who Does Checkbook Control Work Best For?

Thursday, September 24th, 2015

cb control 4

As we all know, a self-directed IRA gives you the freedom to break free from the confines of Wall Street. It allows you to invest in what you wish to make investment decisions that make sense for you, and what you want, like real estate, or a chicken farm, or in the latest technology. No matter what, it’s up to you.
Adding a tool like checkbook control to your IRA account will only give you more independence. Without authorization hassles, bureaucratic interference, or prohibitive guidelines, it’s your no-string-attached answer.
But who exactly would checkbook control work best for? We’ve got answers!

The Real Estate Mogul

If you’re in real estate in any way, you know the costs of owning property. There’s sometimes just more than what meets the eye, and property ownership is very unpredictable, which is partly why a lot of people invest in real estate I think. Where checkbook control comes into play is right alongside of that unpredictability. If something does go wrong and needs to get fixed straight away, or taxes need to be paid, it’s easy to get it taken care of with checkbook control. Just sign the check, and it’s done. No calling your IRA holder, no waiting on hold.

The Investor

Money needs to move fast in the world of investing. The fastest way to get your money where you want it, if you’re investing through your IRA, is with checkbook control. Period. Back in the day, it used to be that you had “a guy”, a guy that would take your money, and invest it for you, however they saw fit. Which lead to a lot of abuse of funds, misleading, and over-promises. With checkbook control, you’ve completely cut out the middle-man altogether, and you’re now taking charge.


Honestly, what this all comes down to is that if you’re serious about growing your IRA, and you’re serious about taking control, then your answer just might be checkbook control.

If you have more questions about a self-directed IRA, checkbook control, or any of the services that Accuplan offers, feel free to get in touch with us today! Our contact information is listed below.

Office: (801) 266-9900
Fax: (877) 890-0929
Toll Free: (866) 454-2649

New to Self-Directed IRAs? Here’s a Breakdown {infographic}

Thursday, September 17th, 2015

sdira breakdown

Self-directed IRAs are what we do best at Accuplan. They’re perfect for the investor that wants absolute control of their retirement funds, and know exactly what they want, and how they envision their future. But if you’re just starting out, say you’ve been funding your retirement accounts for the last 20 years or so, and you’ve grown a healthy amount, and now you’re ready to invest. There’s a lot of information about IRA LLCs, or self-directed IRAs, or investing in gold, so where do you start? It’s best to start with HOW things work

Click the infographic to enlarge.

Self-Diected IRA Infographic

Author: Tanya

Real Estate Update – Housing and The Self Directed IRA

Saturday, November 24th, 2012

The recent housing starts for October 2012 shows a 3.6% improvement. The south and midwest regions of the country are showing the most robustness. The chart below shows the historical housing starts numbers.

Chart: Housing Starts

What we see if that the bottom has been formed with clear support. Starting in Jan 2012 we see the uptrend pattern forming. With the favorable numbers shown in October 2012, we are not seeing a pattern or trend that causing a break in the upward trend line.

Multi Unit Starts

The numbers also show that we are seeing upward trends in multi unit properties. The demand continues to be there to support the starts on such properties.

What these numbers mean for self directed IRA

As we have noted in previous updates, we believe a bottom has been formed in the real estate market. Prices appreciation is still tamped down. Demand continues to be strong for rentals and multi unit rentals. The economic recovery continues to be soft and delicate. However, barring a new major meltdown, which is possible, investment properties are ripe for picking up at low prices. We continue to support hard assets in your retirement portfolio. We still believe that real estate investing is good for those self directed IRA investors that do their homework on the right investment properties.