When your IRA purchases a property outright, you're generally not subject to unrelated business income tax (UBIT). Rent and gains from property sold outright by an IRA are exempt from UBIT. However, if debt was used for the property purchase, unrelated debt-financed income (UDFI) may lead to UBIT obligations. If you establish an LLC or LP within your IRA for property ownership and management, you might owe UBIT on income surpassing $1,000.