Self Directed IRA, UDFI (Unrelated Debt Financed Income Tax)

[Chan K.]

Hi BPer,

For those with self directed IRA experience, can you explain what is the UDFI (Unrelated Debt Financed Income Tax) impact on real estate investment using self directed IRA?

Thanks,

-Chan-

[Loren Whitney]

This is all great information @Dmitriy Fomichenko and @Doreen Chaisson 

I wrote a BiggerPockets blog post recently on UBIT titled, My 3 Most Common UBIT Questions and Answers. Hopefully this adds some additional information and strategy discussion to this thread. Good Luck!