Even experienced CPAs may not be intimately familiar with IRS Form 990-T, Exempt Organization Business Income Tax Return.
You may have told your clients that income generated in an IRA is tax-free while inside the account, which in some cases would be incorrect. When certain IRA holdings – such as debt-financed real estate, private equity, limited partnerships, and LLCs – generate unrelated business taxable income (UBTI), or if debt financing is used, creating unrelated debt-financed income (UDFI), the income is likely subject to unrelated business income tax (UBIT) and Form 990-T must be filed. Read Article: http://www.accountingweb.com/tax/individuals/why-your-clients-may-need-to-pay-taxes-on-ira-investments Comments are closed.
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September 2017
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