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What is a UBIT?

UBIT
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What is a UBIT?

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Unrelated Business Tax Income applies to debt financed property in self directed IRAs and also applies to operating income received from companies owned by IRAs and qualified plans. Typically the tax is owed on the income from the property in the same percentage as is financed. If you finance 80% of the property, then 80% of the income from the property is taxable.

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