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What is a 990-T and when do I need it?

When an IRA (and SD-IRA) invests in alternative investments, such as a real estate investment, they may be required to file a 990-T Exempt Organization Business Income Tax Return when the investment generates UBTI (unrelated business taxable income). These returns are compiled at the IRA account level, not at the underlying investment level. 

If it is necessary for an IRA to file a 990-T, it will generally be prepared by the IRA Custodian, based on the aggregate amounts reported on the K-1s provided by all investment vehicles. For Self-Directed IRAs, the investor or their tax accountant would prepare the form. 

If you have invested in a Marketplace deal via an IRA account, please consult your IRA Custodian or tax advisor to determine what your 990-T filing requirements are.

For more information regarding investing through an IRA account and UBTI, please visit the following article in the CrowdStreet resource library: