SDIRA and UBIT
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SDIRA and UBIT (by Robin [WI]) May 16, 2024 10:03 AM
       SDIRA and UBIT (by plenty [MO]) May 16, 2024 11:21 AM
       SDIRA and UBIT (by GKARL [PA]) May 16, 2024 1:09 PM
       SDIRA and UBIT (by Ray-N-Pa [PA]) May 16, 2024 4:30 PM
       SDIRA and UBIT (by Ray-N-Pa [PA]) May 16, 2024 4:33 PM
       SDIRA and UBIT (by Ray-N-Pa [PA]) May 16, 2024 4:33 PM
       SDIRA and UBIT (by 6x6 [TN]) May 16, 2024 8:04 PM
       SDIRA and UBIT (by BRAD 20,000 [IN]) May 16, 2024 10:27 PM

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SDIRA and UBIT (by Robin [WI]) Posted on: May 16, 2024 10:03 AM
Message:

First time ever: I purchased a property within my SDIRA, which is a Roth IRA, with the assistance of a loan.

From a few seminars with John Hyre, my understanding is that part of the profit is taxable, because it's technically coming from money that isn't part of your retirement contributions. It's called UBIT.

Our new RE CPA says she doesn't normally do the tax returns for those and that my plan administrator should file it (??). Plan administrator says no, that's the CPA's job. I'm thinking maybe she isn't knowledgeable about it and doesn't want to admit it.

If you have experience with this, please share!

--104.230.xxx.xxx




SDIRA and UBIT (by plenty [MO]) Posted on: May 16, 2024 11:21 AM
Message:

Is she open to learning how? --172.59.xxx.xxx




SDIRA and UBIT (by GKARL [PA]) Posted on: May 16, 2024 1:09 PM
Message:

Here's a very good summary explanation of UBIT and what activities are subject to the tax:

iraresources.com/blog/self-directed-real-estate-iras-and-taxes-the-basics-of-ubit-and-udfi

Basically, passive income from rental real estate, dividends and interest are not subject to the tax. Activities that would be considered to produce "earned income" are subject to UBIT. Two real estate related examples are flips and in some instances Airbnb. Outside of an IRA, earnings from flips is considered self employment income and reported on schedule C subject to self employment taxes, not schedule E. When done in an SDIRA, the UBIT equalizes the treatment with what would occur if done outside of an IRA. If you provide substantial services in connection with an Airbnb (i.e. operate like a hotel), that also is self employment income reported on schedule C outside of the IRA; within an IRA that would be subject to UBIT. In short, as long as you're providing residential rentals without any substantial services, no UBIT. --209.122.xx.xxx




SDIRA and UBIT (by Ray-N-Pa [PA]) Posted on: May 16, 2024 4:30 PM
Message:

Mt CPA files for UBIT. The tax is small. I think it was about $45 for the loan. I am making $7,300 on the investment and had the owner carry a second.

I am not a fan of the tax, but if it allows you to make money - I guess. I don't paying $360, to have that report filed. I would rather just have the government take the $405 fleecing instead and call it even. --24.101.xxx.xxx




SDIRA and UBIT (by Ray-N-Pa [PA]) Posted on: May 16, 2024 4:33 PM
Message:

I don't like paying the - --24.101.xxx.xxx




SDIRA and UBIT (by Ray-N-Pa [PA]) Posted on: May 16, 2024 4:33 PM
Message:

I don't like paying the - --24.101.xxx.xxx




SDIRA and UBIT (by 6x6 [TN]) Posted on: May 16, 2024 8:04 PM
Message:

Interesting what GKARL mentioned. I may be paying self employment tax, that hurts. --76.129.xxx.xx




SDIRA and UBIT (by BRAD 20,000 [IN]) Posted on: May 16, 2024 10:27 PM
Message:

Robin,

I found an Indiana CPA thru Ramsey's ELP program who know SDIRA stuff. I'll text you his number for advice on federal info.

UDFI if the SDIRA borrowed money.

BRAD --73.103.xxx.xxx



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