If the IRA buys the deed encumbered with an existing loan in seller name, is that subject to UBIT? The IRA never applied for the loan, just making the payments.
I am invested in an energy company (ticker ET) in my roth IRA through Vanguard. When I purchased, I saw a pop up window stating it "may lead to adverse tax consequences due to UBTI". What does this mean to me?
Can you explain the specific circumstance where retirement funds rolled into solo 401k now used for a passive investment into an LLC that is operating an apartment syndication? Are the dividends and capital gains on sale subject to UBIT? I’m hearing conflicting reports that it is free from UBIT under all circumstances simple because it is a solo 401k, and that is written into the tax laws. This video says it would activate UBIT unless the LLC is structured to be taxed as corporation.
Yes, Roth accounts are subject to Unrelated Business Income Tax (UBIT) if they generate income from unrelated business activities or certain investments.
Great job furthering our SDRA education. I now have more clarity.
If the IRA buys the deed encumbered with an existing loan in seller name, is that subject to UBIT? The IRA never applied for the loan, just making the payments.
I am invested in an energy company (ticker ET) in my roth IRA through Vanguard. When I purchased, I saw a pop up window stating it "may lead to adverse tax consequences due to UBTI". What does this mean to me?
Can you explain the specific circumstance where retirement funds rolled into solo 401k now used for a passive investment into an LLC that is operating an apartment syndication? Are the dividends and capital gains on sale subject to UBIT? I’m hearing conflicting reports that it is free from UBIT under all circumstances simple because it is a solo 401k, and that is written into the tax laws. This video says it would activate UBIT unless the LLC is structured to be taxed as corporation.
Are Roth accounts also subject to UBIT?
Yes, Roth accounts are subject to Unrelated Business Income Tax (UBIT) if they generate income from unrelated business activities or certain investments.
thank you for the video but what if i win the big lottery --am i free from tax ? with this account !!!