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Will investing with an IRA trigger the Unrelated Business Taxable Income (UBIT)?

Updated over a year ago

Typically, self-directed IRAs can trigger the Unrelated Business Tax (UBIT) if they make investments that use debt to magnify returns.

However, Real Estate Investment Trusts (REITs) are exempt from UBIT, even though there is debt on the asset. Each Casa Shares property is structured and taxed as a REIT, so income from each home is exempt from UBIT.

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