When Am I Required to Report UBTI or UDFI to the IRS?

If the unrelated business taxable income (UBTI) or unrelated debt-financed income (UDFI) attributable to your IRA account exceeds $1,000 for any taxable year, IRS Form 990-T must be filed—along with the appropriate amount of tax paid from your IRA account. 

If you have any questions, please consult with your investment sponsor or tax professional to determine if you are required to file Form 990-T or pay taxes. 

STRATA does not provide investment, legal, or tax advice. Individuals should consult with their investment, legal, or tax professionals for such services.

Find out more with STRATA's Quick Guide to UBTI & UDFI: