How to Avoid UDFI Taxes when Investing in Real Estate with your IRA

The ability to invest in real estate using your retirement money is called self-directed investing.  There is, however, a tax trap associated with self-directed IRA investing. Some of you may have heard of the term Unrelated Debt Financed Income Tax (UDFI). Essentially, this is a tax imposed in certain instances when you self-direct your retirement funds into real estate and use leverage at the same time. For example, if you purchase real estate using your self-directed IRA with 50% debt and earn $50,000 of income, that income is generally subject to the UDFI tax of 35% resulting in a tax bill of close to $9,000 for the year. Before you get discouraged, there is a loophole around this and it is very simple.

Inside this free ebook by Amanda Han of Keystone, CPA you’ll discover the very simple loophole of  “How to Avoid UDFI Taxes when Investing in Real Estate with your IRA”


Download “How to Avoid UDFI Taxes when Investing in Real Estate with your IRA”


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