Roth IRA and Multi-family Syndication – UBIT/UDFI consequences

DWQA QuestionsCategory: PennsylvaniaRoth IRA and Multi-family Syndication – UBIT/UDFI consequences
Brent Sanders asked 2 years ago

Hello Mark and Mat,
I am a somewhat recent subscriber to your podcast and cannot get enough.  You have the perfect combination of ‘education’ and ‘entertainment’ content.  Love it!
My question – I am interested in investing in a multi-family syndication with my SD Roth IRA but am unclear around the consequences of UBIT/UDFI with the investment.  The syndication is using a debt structure to purchase a value-add property and intends to refinance or sell in 3-5 years.   Will there be a tax consequence on distributions or gains since the operator is using debt to finance the purchase of the property?
Thank you and please keep up the good work!
Brent
 
 

1 Answers
Trysten Will Staff answered 2 years ago

Your question was answered by Mat and Mark on Directed IRA Podcast EP 71: Open Forum.