PE#3: Estimating Impact of UDFI in a Pri ...

PE#3: Estimating Impact of UDFI in a Private Real Estate Syndication

Feb 10, 2021

Assignment: Patron wanted to invest his IRA into a private real estate syndication that utilizes debt leverage.  Patron wanted to know the impact, if any, of UDFI tax on the net return he might expect.

Work Performed: Utilized proprietary Cash Flow Analyzer® Pro software to model the investment and determine estimated UBIT related to the investment.

Outcome: Provided patron with report generated by the software that included data inputs, intermediate calculations, and projected net returns.  Report showed that UBIT impact was estimated to reduce the expected return by about 0.5%.


  • Patron understood impact of UBIT and was able to compare the net return for this opportunity with other investment alternatives,

  • Patron saved an estimated $750 in fees to their CPA for a similar analysis.

Total Cost: $48

Enjoy this post?

Buy Alan Johnson @ SDIC Services, LLC a coffee

More from Alan Johnson @ SDIC Services, LLC