Just a quick, last-minute reminder... If your IRA owns mortgage-leveraged real estate, you owe UBIT. If your IRA or 401(k) owns an active business structured as a pass through entity (such as an LLC or partnership), you owe UBIT. If your 401(k) owns mortgage-leveraged real estate AND the … [Read more...] about Tax Return for UBIT – Does your retirement plan own leveraged real estate or an active business?
Do you have an IRA/401k-owned investment property that has a mortgage and negative cash flow? Something I've been running into lately is Self Directed plan investors who speculatively bought a house or condo in previously hot markets (think Vegas, Florida, Phoenix, etc). Some of these areas have … [Read more...] about Loaning money to your IRA/401(k)
For many real estate investors, leverage is a key factor to their plans for profits - leverage in the form of mortgage financing. When you introduce mortgage financing into Self Directed IRA ownership of real estate, a special tax called Unrelated Business Income Tax (UBIT) is triggered. The tax … [Read more...] about Solo 401(k) Nonrecourse Loans Now Available