Whether or not a state UBIT return needs to be filed adds another layer of complexity to tax planning. If you own rental real estate in a state that has a separate UBIT return (such as CA, MN, AZ) or if your custodian holds your account in a state that requires a UBIT return, IRA Tax Services may be able to assist. We have prepared hundreds of state and local returns for investors and would be happy to evaluate your federal return for state compliance.