1-800-607-0145 info@midatlanticira.com

Understanding UBIT and UDFI: When Your IRA’s Earnings Become Taxable

Not all income inside an IRA is automatically tax free, especially when leverage or active business activity is involved. Two key concepts every self directed investor should understand before year end are UBIT and UDFI. This article explains when these taxes apply, how to plan for them, and why they matter as 2026 tax changes approach. Whether you invest through real estate, private lending, or partnerships, understanding UBIT and UDFI can help you stay compliant and protect your returns.

How to Plan Your Year-End IRA Moves Before December 31

Before closing out the year, make sure your IRA gets the same attention as your other investments. A few key actions before December 31 can reduce taxes, prevent penalties, and position your account for stronger returns next year. This article outlines the most important year end steps to take, from confirming RMDs and evaluating Roth conversions to reviewing contributions, valuations, and beneficiary designations.

What Every Real Estate Investor Should Know About IRA Rules

Real estate can be one of the most powerful ways to grow your retirement wealth when done correctly. A Self Directed IRA gives you the freedom to invest in real property, notes, and private deals but also comes with strict IRS rules that investors must follow. This article explains how to use retirement funds for real estate while avoiding prohibited transactions, disqualified persons, and costly mistakes. Whether you are a hands on investor or exploring your first IRA purchase, this guide will help you structure your deals with confidence and compliance.

Making the Most of the New Deduction for Seniors

Beginning in 2025, individuals age 65 or older generally can claim a new “senior” deduction of $6,000 under the One Big Beautiful Bill Act (OBBBA). But if your 2025 modified adjusted gross income (MAGI) exceeds $75,000 ($150,000 if you’re a married joint filer), a MAGI-based phaseout will reduce (or may even eliminate) the deduction.

How to Finance Real Estate in a Self-Directed IRA

Most investors know you can use a Self-Directed IRA to buy real estate. What surprises many is that your IRA does not always have to pay all cash. Under the right circumstances, your IRA can borrow money to acquire property, which opens the door to larger or more...