Unrelated Business Tax

Equity Trust Company maintains a very helpful website on Unrelated Business Income Tax (UBIT) that applies to real estate purchased in a self-directed IRA that is partially financed with debt. That portion financed by debt is the same portion of profits upon which a tax must be paid.

Here is the website with more information from Equity Trust:
https://www.trustetc.com/self-directed-ira/rules/ubit

Equity Trust also has a free PDF download that describes UBIT requirements in more detail.

Happy Investing!