American IRA Discusses Self-Directed IRA Taxation Affected as New Rules Change UBTI Calculation

ATLANTA, GA / ACCESSWIRE / July 12, 2019 / The ability to use leverage within a Self-Directed IRA is enticing to real estate investors with a lot of experience. Especially for those who enjoy the tax protections of an IRA. But as a recent post at American IRA noted, there are new rules changes for UBTI calculations that should affect taxes-and investors need to know about it.

According to the recent post at American IRA, there are four key changes. For example, the post notes, “Prior to January 1st, 2018, investors were allowed to aggregate all their unrelated business income from all sources, as well as all expenses, and then calculate the result based on the whole.” However, new rules require investors to calculate unrelated business income and expenses from each investment separately. That includes calculating UBTI separately.

Self-Directed IRA owners who have multiple leveraged properties within an IRA will want to take note, the post says, because it can change things.

“These issues are complicated, and they are often questions for your tax professional,” said Jim Hitt at American IRA. “But one thing we are about at American IRA is enhancing clarity. We want people to understand that holding a Self-Directed IRA does not have to sound as scary and complicated as it might first appear. That’s why we put together posts like this to help elucidate the changes in the tax code-so investors can understand what changes are coming and plan accordingly.”

The post notes that the changes can hurt smaller investors, potentially representing a tax increase on some amounts. That’s why investors will want to be wary about the tax implications of any investment-especially using leverage-within a Self-Directed IRA before getting started.

“We think that these tax issues are vital information for anyone considering a Self-Directed IRA,” said Jim Hitt. “That’s why we work so hard to provide our audience with the information.”

For more information about Self-Directed IRAs, visit or call 866-7500-IRA.


American IRA, LLC was established in 2004 by Jim Hitt, CEO in Asheville, NC.

The mission of American IRA is to provide the highest level of customer service in the self-directed retirement industry. Jim Hitt and his team have grown the company to over $400 million in assets under administration by educating the public that their Self-Directed IRA account can invest in a variety of assets such as real estate, private lending, limited liability companies, precious metals and much more.

As a Self-Directed IRA administrator, they are a neutral third party. They do not make any recommendations to any person or entity associated with investments of any type (including financial representatives, investment promoters or companies, or employees, agents or representatives associated with these firms). They are not responsible for and are not bound by any statements, representations, warranties or agreements made by any such person or entity and do not provide any recommendation on the quality profitability or reputability of any investment, individual or company. The term “they” refers to American IRA, located in Asheville and Charlotte, NC.


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