UBIT - What is that and how it may effect your IRA

If you invest an IRA (not a Solo 401k) in real estate and then immediately or at a later date get a loan against the real estate, you need to know at least the basics about a concept known in the Internal Revenue Code as "The Unrelated Business Income Tax."

Eric Wikstrom wrote an article for Ed Slott's IRA Advisor back in June 2009. Although the trust income tax brackets have changed, the concept hasn't. And since this topic has come up a great deal recently, we thought this would be a good time to bring back a great article on the topic. To read the article, click here.