UBTI in IRAs: Reporting Unrelated Business Taxable Income | CPE Course

BarbriSFCourseDetails

Course Details

Course Information

smart_display Format
On-Demand
signal_cellular_alt Difficulty Level
Intermediate
work Practice Area
Tax Preparer

Date & Time

event Date
Thursday, August 3, 2023
schedule Time
1:00 p.m. ET./10:00 a.m. PT
timer Program Length
110 minutes

Credit Information

BARBRI is a NASBA CPE sponsor and this 110-minute webinar is accredited for 2.0 CPE credits.
BARBRI is an IRS-approved continuing education provider offering certified courses for Enrolled Agents (EA) and Tax Return Preparers (RTRP).

$197.00

CPE

ALL

This course will give nonprofit tax professionals and advisers a thorough guide to recognizing and reporting unrelated business taxable income (UBTI) about IRAs, qualified plans, and other retirement accounts. The webinar will focus on the standards and guidelines for determining whether income derived from assets held by a qualified plan is UBTI subject to tax and provide a detailed exploration into calculating UBTI and reporting the resulting unrelated business income tax.

Faculty

Bill Humphrey

Co-founder and CFO

New Direction Trust Company

Mr. Humphrey is recognized in the industry as an expert in self directed IRAs, HSAs and other tax-advantaged accounts, as well as the IRS codes pertaining to these investments. He has taught courses on retirement plan investment rules to investors, CPAs and investment professionals through a variety of venues including the University of Denver School of Law. An experienced CPA, he has focused on income tax, auditing, tax-related real estate issues and forensic accounting for more than 20 years. His tax experience has been instrumental in understanding and teaching about IRAs and debt leverage. He is well versed in IRA law and current with all legislation governing tax advantaged plans.

expand_circle_down Expand to View Full Bio expand_circle_up Collapse Bio

William M. Funk

Member

Norris McLaughlin, P.A.

Mr. Funk focuses his practice on tax law, with extensive experience in tax planning and dispute work. He represents individuals, businesses, funds and non-profit organizations. He successfully represents clients before federal and state tax authorities and in business negotiations. He counsels clients regarding structuring investments and developments by nonprofits to avoid exposure to unrelated business income tax. He has also been published in leading tax publications on a wide array of tax issues ranging from taxation of real estate developments to international tax policy.

expand_circle_down Expand to View Full Bio expand_circle_up Collapse Bio

Description

While the default treatment of IRAs and other qualified retirement plans is to defer income tax on any accumulation in asset value until distributions are taken, certain types of income and transactions subject an ordinarily exempt/deferred plan to current income tax. An IRA or other plan that receives UBTI over a specified threshold is required to report the income and pay unrelated business income tax on the UBTI.

The most apparent circumstances where UBTI applies to a qualified plan are in self-directed IRAs owning real estate or closely held business assets, particularly where debt financing is involved. However, assets such as master limited partnerships (MLPs), which are traded on a public exchange, can generate UBTI and result in unforeseen tax filing and payment obligations.

Tax advisers must grasp the complex UBTI rules as they pertain to qualified retirement plans. Failure to recognize and account for UBTI in a tax-deferred plan can lead to a host of adverse tax consequences, including tax, penalties, and disallowed contributions.

Listen as our experienced panel provides practical guidance on the tax consequences of UBTI in qualified retirement plans, offering detailed instructions on identifying UBTI-generating assets and discussing filing and payment requirements arising from UBTI in qualified plans.

Outline

UBTI generating assets in IRAs and other qualified plans
Self-directed IRA reporting
IRA trusts and other vehicles holding UBTI assets
Identifying and calculating UBTI
Filing Form 990T

Benefits

The panel will discuss these and other important topics:

What assets and structures will generate UBTI?
How do MLPs held by an IRA impact UBTI reporting and payment requirements?
What are the estimated payment rules for qualified plans with unrelated business income tax liabilities?
Unrelated debt-financed income rules and treatment of qualified plan assets financed by debt
What factors should account holders be especially aware of in cases where the plan holds UBTI-generating assets?

NASBA Details

Learning Objectives

After completing this course, you will be able to:

Identify assets within IRAs and other qualified plans that generate UBTI
Detail the impact of debt financing in generating UDFI/UBTI
Recognize inclusions, exclusions, and thresholds for reporting UBTI on Form 990T

Field of Study: Taxes
Level of Knowledge: Intermediate
Advance Preparation: None
Teaching Method: Seminar/Lecture
Delivery Method: Group-Internet (via computer)
Attendance Monitoring Method: Attendance is monitored electronically via a participant's PIN and through a series of attendance verification prompts displayed throughout the program
Prerequisite: Three years+ business or public firm experience at mid-level within the organization, preparing complex tax forms and schedules; supervisory authority over other preparers/accountants. Specific knowledge and understanding of UBTI and UBIT for Form 990 T.

Strafford Publications, Inc. is registered with the National Association of State Boards of Accountancy (NASBA) as a sponsor of continuing professional education on the National Registry of CPE Sponsors. State boards of Accountancy have final authority on the acceptance of individual courses for CPE Credits. Complaints regarding registered sponsons may be submitted to NASBA through its website: www.nasbaregistry.org.