IRA Tax Services provides consultation and filings related to tax-deferred 1031 exchanges within IRAs when UBIT from the sale of the asset occurs. Historically this strategy has remained relatively unknown within the IRA industry, and has not been fully utilized by IRA investors. UBIT may be deferred or, in the case of the asset being debt free for the year, completely eliminated.
Analyzing the rate of return for debt-leveraged property within an IRA can be complicated, especially if you are unable to calculate the expense of UBIT for the investment. This service is useful for investors who are anticipating the purchase of debt-leveraged property, but are unsure of how to optimize the rate of return. Factors such as debt pay down, LTV, cap rate, and mortgage interest can complicate the calculation further. IRS Tax Services can help.
If your IRA is debt-leveraged, invested in an operating business, invested in a real estate or mortgage fund, or invested in a fixing-and-flipping project, your IRA may owe Unrelated Business Income Tax (UBIT) on all or a portion of the profit. If you need help determining whether your IRA needs to pay UBIT, or need assistance filing the tax form 990-T to calculate and apply UBIT, then you need the tax professionals at IRA Tax Services.