CALIFORNIA
★ ★ ★ ★ ★
I purchased 6 single family homes and 2 estate lots using IRA funds in 2009/2010. The homes were debt financed. My regular CPA was very hesitant to do the tax returns on the IRA properties so IRA Tax Services has submitted my (IRA) tax returns for the last 5 years. With the depreciation on the houses I was able to avoid any annual UBIT tax on the debt financed properties. I have since paid-off all of the mortgages on the 6 properties and will be able to avoid any UBIT tax if I sell the properties no sooner than 12 months after the mortgages have been paid-off.