Tait Duryea and Ryan Gibson welcome back Mark Kohler to unpack one of the most misunderstood topics in self-directed IRA investing: UBIT and UDFI. Mark explains how these taxes show up in real estate syndications, why leverage can trigger tax inside an IRA, when C corp blockers may help, and what pilots should watch for on K-1s and 990-T filings. This episode gives high-income professionals a clearer way to evaluate SDIRA deals without letting tax fear cloud the bigger investment picture.
Mark Kohler is a CPA, attorney, tax strategist, and longtime advocate for small business owners and investors. With decades of experience in tax law, entity structuring, retirement planning, and asset protection, Mark is known for making complex tax strategies easier to understand and apply. He brings practical clarity to the rules that affect pilots and high-income professionals using retirement dollars to invest beyond Wall Street.
Show notes:
(0:00) Intro
(0:48) UBIT and self-directed IRAs
(4:32) Understanding UBIT, UDFI, and 990-Ts
(5:36) Why UBIT exists
(10:05) How C Corp blockers work
(14:37) Reading K-1 warning signs
(18:57) How leverage creates UDFI
(23:09) Comparing SDIRA and cash investors
(31:18) Trust tax rates explained
(37:41) When IRAs need an EIN
(41:37) Real numbers on UDFI taxes
(55:30) Outro
Connect with Mark:
- Website: https://markjkohler.com/
- LinkedIn: https://www.linkedin.com/in/markjkohler/
Related Episodes:
- #110 - The IRA Club Advantage: The Self-Directed IRA Strategy for Pilots with Ramez Fakhoury
- #36 - Decoding the Untapped Potential and Complex World of Self-Directed IRAs with Derreck Long
- #82 - From LLCs and HSAs to Roth IRAs: Mastering Wealth Protection with Mark Kohler
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*Legal Disclaimer*
The content of this podcast is provided solely for educational and informational purposes. The views and opinions expressed are those of the hosts, Tait Duryea and Ryan Gibson, and do not reflect those of any organization they are associated with, including Turbine Capital or Spartan Investment Group. The opinions of our guests are their own and should not be construed as financial advice. This podcast does not offer tax, legal, or investment advice. Listeners are advised to consult with their own legal or financial counsel and to conduct their own due diligence before making any financial decisions.